The monitoring system is the mechanism that carries continuous checks on the activities of an organization. I will design a monitoring system in a way that it can avail the right data and information that I can use to make decisions and also be able to detect any financial irregularities.
I will set up the following steps that will make it easy for me to manage the global financial statements of my organization. I will identify the characteristics of the manufacturing industry determining the chain of activities that are involved, and then define the strategy of my organization in terms of the type of products, the profit margins and the cost controls including the supply chain structure. My third step will look into the quality of financial statements of my organization by questioning whether the balance sheet is the exact representation of the economic position and if the income statement indicates the actual economic performance of the organization.
My fourth step is analyzing financial statements by comparing the current and the previous periods to see if there is parity. My second last step is I will be able to prepare the forecasted statements so has to determine the future cash flows of the firm.
Finally, the last step is valuing the firm based on the information from my previous actions. Other steps will be answering the questions on whether the results I have are to be trusted or they might be having error or cases of fraud (Moyes, G. D., Lin, P., & Landry Jr, R. M. (2005).
In case there are red flags in one of the plants that there might be errors or fraud I will be able to carry a thorough audit on all the plants as it might be across all the plants. I will look deep into the statement of cash flows detect errors and parities (Owusu-Ansah, S., Moyes, G. D., Babangida Oyelere, P., & Hay, D. (2002).
Moyes, G. D., Lin, P., & Landry Jr, R. M. (2005). Raise the red flag: a recent study examines which SAS No. 99 indicators are more effective in detecting fraudulent financial reporting. Internal Auditor, 62(5), 47-52.
Owusu-Ansah, S., Moyes, G. D., Babangida Oyelere, P., & Hay, D. (2002). An empirical analysis of the likelihood of detecting fraud in New Zealand. Managerial Auditing Journal, 17(4), 192-204