The Science of Planning

After the scoping of the engagement, we continue through to our planning stage. This phase establishes the purpose, business methodology, regulatory standards and compliance, risk assessment, best practices, resources, and environmental factors that can affect and/or influence the outcome of the engagement.

KBL has adopted Six Sigma as its total quality management methodology (“TQM”) and adheres to best practices and regulatory compliance guidelines from the American Institute of Certified Public Accountants and other leading bodies, including Generally Accepted Auditing Standards when conducting an audit of financial statements and COSO (“Committee on Sponsoring Organization of the Treadway Commission”) when the engagement involves internal audit and risk management.

The planning process touches all the components of an organization, specifically the areas of finance and accounting, core business operations, sales and marketing, financial reporting, and taxation. This is extremely important because any increase in operational efficiencies will affect organizational throughput which will then have a significant positive impact on other areas of a business. For a Company to retain and/or leverage the value of its throughput, which is most often an increase in net revenue, we will need to plan for the Company’s success as earnestly as we have done to achieve operational efficiency. In addition, we can perform specific procedures that will enable us to develop:

• An effective strategy for leveraging financial gains that are a direct result of your Company’s improved operational efficiency, and
• An understanding of emerging markets and opportunities that position your business for opportunities that continue to leverage value.

To the extent practicable and meaningful, we can also perform ongoing assessments of your Company’s performance which would include various analyses of financial data. This analysis of the financial and operational data is geared to identifying trends, fluctuations, and relationships in the market that may cause adverse effects and/or present immediate growth opportunities. This process of ongoing evaluation and performance measurement guides us in overall risk assessment.