audit final report - Situation Audit - Advance Towing Erica - Studocu This will be followed by a consideration of FNMAs mission, vision, values, and goals. 12+ Situation Analysis Examples Situation Analysis Template Details File Format Google Docs MS Word Pages Size: A4, US Download Marketing Situation Analysis Details File Format Google Docs MS Word Pages Size: A4, US Download Current Situation Analysis Template Details File Format Google Doc MS Word Pages Size: A4, US As the Federal Housing Finance Agency (2019) outlined after the federal government bailed FNMA and Freddie Mac out of the financial situation they found themselves in after the housing market collapse, the federal government set specific criteria in a balanced scorecard that the agencies were expected to meet. You need to have an idea of what a situation analysis is all about so you can use this document in the best and most effective way possible. More so, be aware of demographic and geographic factors that can affect the successes of your general action plans. 4. As Dess et al. Observations should not be based solely on the opinions of the author. As Siska (2015) explains, MCS is generally defined as the process by which managers assure that resources are obtained and used effectively and efficiently in the accomplishment of the organizations objectives (p. 142). The report summarizes the current situation of the National PTA, focusing on key internal factors. Financial Analysis of PUMA and Nike, Inc. The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. Human resources truly are the most important resource at FNMA. Another resource that FNMA has is that they have a large number of employees that are centered primarily in Washington, D.C. and Dallas, Texas. Performing an initial analysis, and then updating it, provides businesses with the tool set to better understand their environment, and their position in that environment. Course Hero is not sponsored or endorsed by any college or university. It helps detect the gaps between the current state and desired state. who serve at the national, state, and local levels of the organization. What is international strategic planning? Use specific examples whenever possible and demonstrate the product . Compensation for the CEO is limited to $600,000 while the firm is in conservatorship. FNMA is a service organization. 10 Best Practices for Writing a Digestible Audit Report. What are the strategic, tactical, and operational objectives of production? Although it started out as a government agency, in the 1960s it became an independent organization. A situation analysis is a formal process which assesses an organizations recent history and current situation. You consent to our cookies if you continue to use our website. By stabilizing existing homeowners in place, this had the effect of providing increased dependability in the housing markets where such loans were provided, increasing the value of homes in the entire neighborhoods, and turning around situations where multiple losses could have been experienced. Situation audit refers to the analysis and appraisal of these basic planning premises and covers the entire process of determining the following pertinent issues: (i) Expectations of major outside interests in relation to: society, community, stakeholders, customers, suppliers, and creditors; (ii) Expectations of major inside interests in relation to: top managers, senior and middle-level managers, supervisors, staff and workmen; (iii) Data base with respect to past performance, current situation and forecasts; and. Retrieved from http://www.fanniemae.com/portal/about-fm/fannie-mae-history.html. Brand Audit Example: Nestle. By focusing marketing efforts on very narrow market segments, this allows FNMA to meet the needs of the target markets better. All rights reserved. The situation audit is a forum for sharing and debating divergent views about relevant environmental changes. Content Filtration 6. USA Today. MBA 610 Project 2 .docx - RUNNING HEAD: Situation Audit According to the Associated Press (2018), FNMA is not tax exempt, and the recent changes to the tax laws caused the federally-controlled corporation to experience a $6.5 billion loss. Create a framework. All other trademarks and copyrights are the property of their respective owners. As Tanwar (2013) explains, in a focused strategy, an organization focuses on a few select targeted markets. The current condition of the business within its environment as specified in the analysis can greatly affect the view of the management when it comes to maintaining its productivity, effectiveness, and overall corporate efficiency. Keep in mind that a situation analysis, though focused on the condition of the business, also deals with how the business performs in the marketplace. (2018a). It has been downloaded 5422 times and is available for you to use, free of charge. Despite financial limitations on compensation, FNMA has attracted a highly-qualified board which has been able to turn the organization around. You may also check out needs analysis examples. Retrieved from https://www.investopedia.com/articles/investing/091814/fannie-mae-what-it-does-and-how-it-operates.asp. Self-Interest Threat A self-interest threat exists if the auditor holds a direct or indirect financial interest in the company or depends on the client for a major fee that is outstanding. is to give the leadership insights that might be helpful in future strategic planning or decision-, The report also includes four recommendations to help leadership improve the. To unlock this lesson you must be a Study.com Member. What is human resource strategic planning? Prohibited Content 3. (2012) outlined, service, marketing and sales, and operations are key components of any organizations primary business activities. Developing a situation analysis can help organizations measure their relevance. You also have the option to opt-out of these cookies. If you can develop a transparent situation analysis, you can proceed to the creation of agap analysis. Account Disable 12. 1650 The Standards of Field Work from misappropriation of assets. New York, NY: McGraw Hill Education. In this article we will discuss about:- 1. Also, due to the rules of the conservatorship, FNMA may not offer any equity-based compensation to their employees. resources are analyzed, and its organizational size, structure, leadership, governance, and. Retrieved from http://www.fanniemae.com/portal/about-fm/governance/corporate-governance.html, Federal National Mortgage Association. This creates more liquidity for lenders such as credit unions, thrifts, and banks, who can then underwrite or fund more loans. As FNMA (2018b) reports, if there were to be major turnover in upper management, this could create a situation where turnover in key management positions could cause problems as the new management personnel needs to integrate into the existing management structure. This puts the human resources who were involved in this process at a very high value because the experience and knowledge that they have could have only come from the unique experiences that they gained as the result of helping so many homeowners save their homes from foreclosure. (2018b). Know the company, its nature of operations, and the core of its existence. While corporate governance is an important aspect of strategic control of a business, FNMA is faced with unique challenges in this area. NOTE . This analysis shows areas where the organization excels in comparison with other competitors, and where the organization may be lacking. Because of the situation with their conservatorship, FNMA is somewhat restricted in the makeup and nature of their board of directors. When a large retailer like Borders goes under, it is rarely only in response to one mistake or problem. As the organizational chart presented by The Official Board (2018) illustrates, Fannie Mae is organized around functional groupings which include common business functions such as HR and IT, as well as major business functions such as risk management and their main mortgage business. Through the experience of helping homeowners through the foreclosure crisis, FNMA has gained particular expertise in the area of home financing that no amount of training or research could exactly duplicate. They also do not take into account any specific economic situations around the world. 1. One of these retailers, Barnes & Noble, is still doing business. For you to be able to execute this, you have to ensure that you will cover all the elements and factors that are essential to be included in your situation analysis. 3. Stop an audit during difficult situations with auditees. Within this business-level strategy, FNMA has what Porter referred to as a focus strategy or niche strategy. A huge resource that falls under the intangible resource column that FNMA has is their human resources. Making a situation analysis will allow your business to create a relevant business and marketing plan. You need to align these elements for you to ensure that you will highly benefit from using the results of your situation analysis. Retrieved from http://www.fanniemae.com/resources/file/ir/pdf/monthly-summary/113018.pdf. Investopedia. Procedia Economics and Finance, 25(15), 141147. The company also utilizes the Net Promoter score to determine customer satisfaction. headquartered in Alexandria, Virginia, its operations span across the nation. From the time that FNMA went into conservatorship until now, it has emerged from a point where it had to be bailed out to now, where FNMA has generated a consistent profit. Failure to identify key business weaknesses could lead to overlooking them, which jeopardizes any plans that do not take those limitations into consideration. This allows the organization to respond rapidly to needs within these organizational silos. How does the organization benefit? AS 2315: Audit Sampling | PCAOB This will be followed by an analysis of strengths and weaknesses, along with the organizations demonstrated ability to learn and change. The vision of FNMA is to be Americas most valued housing partner (Fannie Mae, 2019a). Audit sampling | ACCA Qualification | Students | ACCA Global A situation analysis does not only focus on what can be seen on the surface. What is involved in contingency planning in events management? At a minimum, a situational analysis will contain information about market factors, competitive factors, environmental factors, and an internal look at strengths and weaknesses. Although similar, they are not identical. It examines a business's current and potential customers and how they respond to the company's products and services. A full understanding of the reasons why businesses perform the way they do can help you identify opportunities that you can take to ensure the continuous growth, improvement, and development of your company. . Enrolling in a course lets you earn progress by passing quizzes and exams. What are strategic issues in strategic planning? A hospital employee did not observe minimum necessary requirements when she left a telephone message with the daughter of a patient that detailed both her medical . This vision is well-aligned with the organizations mission statement. This linkage gives FNMA the inside track on how lenders will use the system and allows FNMA to tailor their offerings and shape the systems in the way that will best suit their customers, giving them a tremendous competitive advantage. Brookings Institute. factors or changes in the organization's performance or capacity. What is a situation audit in strategic planning? Shifting the risk of mortgage defaults from taxpayers to investors. This is because the investors that support them are uncertain of whether or not their investments in the mortgages being funded will be successful. Having a situation analysis document can make it more efficient for the business to list down all the benefits that each stakeholder can get from the current condition of the business operations and management. What are contingency planning security controls? In FNMAs (Fannie Mae, 2018a) Code of Conduct, all values and behaviors are centered around this mission. Business and marketing students often conduct fictional brand audits on known brands. For example, unlike other publicly-held organizations, shareholders are not entitled to vote for members of the board of directors (FNMA, 2018b). B., & McNamara, G. (2012). BusinessManagementIdeas.Com. Dess, G. G., Lumpkin, G. T., Eisner, A. As FNMA (2018b) outlined, the terms of the conservatorship have put considerable limits on the compensation that FNMA can offer to their directors and to their employees. Situation Analysis of a Marketing Plan: Example and Definition Description of Contents. - Definition & Examples, Psychological Research & Experimental Design, All Teacher Certification Test Prep Courses, Retail Strategy & Attractive Market Segments, Stages of the Strategic Retail Planning Process, Financial & Societal Objectives in Retail Planning, Business Plans: How to Develop a Business Mission Statement, SWOT Analysis & Situation Audit in Retail, How to Identify Strategic Alternatives in Marketing, Retail Marketing Mix vs. With the help of a situation analysis, companies can be keener in terms of developing counteractions, contingency plans, and strategies for improvement. I would definitely recommend Study.com to my colleagues. In the general scheme, watching over this aspect is a task given to the auditors. Within the code, values such as valuing people and their communities, serving their partners, doing things right, and leading the market are clearly articulated values that serve the central vision and mission of the organization. History. This is similar when you plan to develop amarketing SWOT analysisor any other kinds and types of business documents. Create your account. https://doi.org/10.1016/S2212-5671(15)00722-4, Tanwar, R. (2013). The other, Borders Books, went defunct. Disclaimer 8. The following activities are recommended to continue FNMAs success: Continue the Way of Working program so that everyone in the company can go through the program. Fannie Mae monthly summary highlights - November 2018. What is a situation audit in strategic planning? Suppose you are responsible for accounts payable and receivable and must implement procedures to prevent a potentially risky aggregation of responsibilities in employees working in the accounting department. To accomplish this objective, the National PTA uses a simple, decentralized, functional organizational structure and employs a human resources strategy, in, which its financial, technology, and physical resources are used to develop and support its, The National PTA relies upon collaborative communication, training, networking, and advocacy, It has notable achievements in the areas of child labor, laws, universal kindergarten, the National School Lunch Program, and the juvenile justice, However, the National PTA does not have an identifiable process of measuring the, This situation audit report recommends the National, PTA engage in outcome measurements focused on the effectiveness of achieving its goals at the, national, state, and local levels to secure and maintain its competitive advantage in an ever-. PDF Audit Risk and Materiality in Conducting an Audit If you will create a situation analysis, you can ensure that you can monitor the changes in the market performance of the business within varying periods. In addition to stabilizing the mortgage lending environment, FNMA was expected to increase the role of private capital in mortgage financing. What is the symbolic model of strategic planning? .06) S = Situation (a concise statement of the problem) B = Background (pertinent and brief information related to the situation) Report a Violation 11. Competitive advantage is thus gained through effectiveness rather than efficiency. values, and goals will help determine the need for adjustments in light of key environmental. "If you can't defend it, don't write it,". Strengths and weaknesses refer to the things that an organization does internally, while opportunities and threats are concerns that the business faces from the outside. Situation Audit: A situation audit seeks to gauge the challenges affecting market gaps that a company may venture into within a given period. Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors. Example What is the purpose of strategy in an organization? For example, if the level of inherent and control risk is low, auditors can make an appropriate . Situation Audit - Writer Tools This will be followed by an analysis of the strategy and objectives, and how well these strategies contribute to a strategic advantage for the organization. is developed with an objective of forming a nationwide network of members, working for every. IS Audit Basics: The Components of the IT Audit Report (2019a). Other objectives include creating infrastructure for other organizations to perform in the secondary market in the future and increasing external investment through private capital for the mortgage market. Having references at your disposal can help you create an outstanding situation analysis. This document is also used to provide details about all the areas of the business operations and how these areas are interlinked to ensure the smooth flow of business operations daily.