Accession Number : AD1046469


Title :   Financial statement analysis, internal controls, and audit readiness: Bestpractices for Pakistan army financial management officers


Descriptive Note : Technical Report


Corporate Author : Naval Postgraduate School Monterey United States


Personal Author(s) : Malik,Muhammad S


Full Text : https://apps.dtic.mil/dtic/tr/fulltext/u2/1046469.pdf


Report Date : 01 Jun 2017


Pagination or Media Count : 177


Abstract : Pakistan has the worlds sixth-largest standing army, which requires numerous goods and services supplied by contractors to maintain its efficient operation. To ensure the effectiveness of the contract award process, the Pakistan Army financial management officers need further education regarding how-to conduct a financial statement analysis on potential contractors. Furthermore, although the Pakistan Army follows its own internal controls and has an audit system, Pakistan Army financial management officers may benefit from the latest research in these areas for better strategic and financial management of the overall military organization. The purpose of this research is to create a best practices educational guide that includes a framework for the processes of conducting a financial statement analysis of a potential contractor, instituting effective internal controls for an army outfit, and assuring the audit readiness of an army organization that will serve to assist Pakistan Army financial management officers. This research concludes that the four steps of financial statement analysis should be adopted, including vertical and horizontal trend analysis, ten financial ratios, bankruptcy analysis, and fraud analysis. This research also recommends implementing the Committee of Sponsoring Organizations of the Tread way Commission internal control framework and the U.S. Department of Defense Financial Improvement Audit Readiness strategy. An educational guide is created as a reference for Pakistan Army financial management officers to enhance their knowledge of financial management matters related to financial statement analysis, internal controls, and audit readiness.


Descriptors :   auditing , contractors , FINANCIAL MANAGEMENT , DEPARTMENT OF DEFENSE , PAKISTAN , ARMIES (FOREIGN) , bankruptcy


Subject Categories : Economics and Cost Analysis
      Military Forces and Organizations


Distribution Statement : APPROVED FOR PUBLIC RELEASE