Going global while being local
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The document outlines strategies for expanding management consulting practices globally while maintaining a local focus, emphasizing the importance of establishing networks and a strong branding presence. It details services offered, quality control measures, and the need for compliance with international regulations across various sectors. Additionally, it provides a checklist for implementing effective firm policies, branding, networking, and quality management in the context of global operations.
Going global while being local
- 1. GOING GLOBAL WHILE BEING LOCAL CA Bharath Rao – ACA, BCOM, CISA, CEH, CHFI
- 2. GOING GLOBAL!! Global Practice Local Practice Overseas Global Practice Overseas Networking
- 3. EXTENDING THE PRACTICE OVERSEAS Business Model: • Set up Management Consulting firms • Financial and Business Advisory and Assurance • Restructuring/Mergers and Acquisitions • Joining a network firm Pay attention to: • Corporate and Allied Laws • Tax Withholding in India and in the Foreign Country • Privacy Laws • Indian and Foreign Allied Laws, Corporate and Taxation Laws and other laws • Indemnity Insurance requirements
- 4. ILLUSTRATIVE LIST OF SERVICES Data Analytics Accounting Forensics and Investigation Design and Implementation of any financial information system Rendering of outsourced financial services Payroll Accounting International Taxation Advisory Transfer Pricing Compliance Attest Services – SAE 3402, SAE 3400 Audit Support Services – Statutory Audits Internal Audits Internal Control Audit Other Certification and attest services – Tax and Corporate Matters Management Consulting Due Diligence Internal Control Design Value based services
- 5. HOW DO WE GET THERE Branding Network Quality
- 6. Brandin g
- 7. BRANDING Branding is absolutely critical because of the overall impact it makes on the practice Branding can change how people perceive the practice, it can drive new business Achieving Branding Virtual Identity Website Social Media SEO – Search Engine Optimization Thought Leadership Articles Newsletters Blogs Brandin g
- 8. Brandin g
- 9. GoDaddy, BigRock, AWS, Azure – Web hosting Adobe Spark – Newsletters and Branding Brandin g
- 10. WHY NETWORK? Friendship Connections Positive Influence Opportunities Referrals Advise We are now living in a world without borders Networ k
- 11. NETWORKING Network Firms Conferences, Seminars Visiting Card Trick Connecting with Audit professionals in other countries Setting up offices overseas Professional Platforms Technology has made the world smaller Networ k
- 12. QUALITY – THE IDEAL CHARTERED ACCOUNTANT CA Functional LegalTechnology Quality
- 13. QUALITY – THE IDEAL FIRM Culture •Being open to adapt newer ways of work Talent •Diverse staffing function across various verticals and industries Quality •Skilling Up and Continuous Learning Innovation •Modern ways to problem solve leading to increased value added delivery Quality
- 14. QUALITY Quality and Documentation Standards •Workpaper Documentation lifecycle •Planning and Scoping Documents •Design and Execute Procedures •Conclusion Documents Deliverable Quality •Findings •Recommendations •Improvements Peer Reviews •ICAI Peer Reviews •Network Partner Firm Peer Reviews Domestic Engagements Joint Engagements with other firms in India and abroad Overseas Engagements Firm Policies on Engagement Quality •Policy in Firm and Engagement Staffing and Independence Practices •Policy in Audit Approach •Materiality Levels •Responses to Risk Assessment •Sampling Methodology •Substantive Approaches •Documentation Templates and Checklists •Engagement Quality Review •Audit Partner Rotation •Timesheet Management Quality
- 15. AUDITING STANDARDS SA/ISA Name Application 220 Quality of engagement Team planning and quality control of the engagement 230 Audit Documentation Workpaper Maintenance, preservation and Filing guidelines 250 Regulation understanding Regulation Applicability Analysis 260 and 265 Communications with TCWG Matters to be communicated to TCWG for response 300 Audit Planning Audit Planning and planning documentation 315 Understanding the Business and Risk Assessment Process Understanding, Risks and Controls and initial assessment procedure and it’s documentation 320 Audit Materiality Defining Materiality Levels, treatment and it’s documentation 530 Sampling Sampling Methodologies and Documentation 500, 501, 505 and 520 Audit Evidence Methods of obtaining audit evidence and its documentation in workpapers Quality
- 16. BUDGETING, PROFITABILITY ANALYSIS AND COST CONTROL Engagement Client Engagement Partner Engagement Revenue Internal Audit – Procurement and Asset management Process ABC Limited CA. John Smith 150000 Engagemen t Team Budgete d Hours Revenue per hour Cost Per hour/Hour Targete d Revenu e Targete d Costs Targete d Profit Partner 5 25000/Ho ur 5000/Hou r 125000 20000 100000 Manager 20 6000/Hou r 1500/Hou r 120000 30000 90000 Senior 35 4000/Hou r 800/Hour 140000 28000 112000 Staff/Articl e 35 1500/Hou r 300/Hour 52500 10500 42000 Budgeted Profit = Engagement Revenue – Targeted Costs: Rs. 61500 translates to 41% Quality
- 17. Engagement Team Budgeted Hours Actual Hours Cost Per hour Target Costs Actual Costs Differenc e Partner 5 3 5000/Hour 20000 15000 5000 Manager 20 30 1500/Hour 30000 45000 (15000) Senior 35 32 800/Hour 28000 25600 2400 Staff/Article 35 38 300/Hour 10500 11400 (900) Total 95 103 88500 97000 (8500) BUDGETING, PROFITABILITY ANALYSIS AND COST CONTROL Differences of Rs. 8500 should be introspected and appropriate feedback should be provided to the team in relation to budgeting, engagement quality and employee efficiency Engagement Client Engagement Partner Engagement Revenue Internal Audit – Procurement and Asset management Process ABC Private Limited CA. John Smith 150000 Quality
- 18. QUALITY ENABLERS Quality Collaboration Techniques Structured Process of Engagements Systematic Documentation Review Protocols Continuous Learning SharePoint, Alfresco Document Management System Orange HRMS, Open HRMS HRMS System SugarCRM, SuiteCRM CRM Teams, Google Hangouts, SharePoint Collaboration Office 365, AWS, G Suite Secure Cloud and Email
- 19. “You were right about the four horsemen, they needed to learn to work together like a single organism” - Thaddeus Bradley (Portrayed by Morgan Freeman) and Dylan Rhodes (Portrayed by Mark Ruffalo) in the movie “Now you see me 2”
- 20. LET’S GO GLOBAL Checklist
- 21. ILLUSTRATIVE CHECKLIST Sl. No Area Requirement Remark 1. Firm Policies Implementation of HR Policies 2. Firm Policies A framework can be implemented to decide on Engagement staffing, engagement approach, review controls and documentation benchmarks 3. Branding Design and implement a website highlighting the array of services, key team members, capabilities of the firm. Minor Costs 4 Branding On a regular basis, thought leadership in the form of articles, webinars etc. needs to be prepared and published on the website, YouTube, LinkedIn etc. 5. Branding Implement a custom email service using Google Apps, Office 365 etc with a domain of the firm Minor Costs 6. Networkin g Be active on social media and update it with opinion and point of views of the firm in relation to changes in economy, law,
- 22. ILLUSTRATIVE CHECKLIST Sl. No Area Requirement Remarks 7. Networkin g Implement a CRM solution which can be used to track leads and opportunities. Update the CRM with the details of the visiting cards of the persons that you would connect in meetings, conferences, travel etc. (Please follow the guidelines of ICAI in relation to matters of solicitation) 8. Quality Design and implement checklist, workpaper templates, etc., based out of the Auditing and Attestation standards. Develop a firm policy on Materiality, Sampling, Substantive procedures. 9. Quality Implement a workflow system that is to be used mandatorily for storing Evidences provided by Client, workpapers, review mechanism and sign offs. Minor Costs 10. Quality Implement a Cloud system of storage and file archival Minor Costs 11. Collaborati Implement a collaboration tool to stay connected with the Minor
- 23. ILLUSTRATIVE CHECKLIST Sl. No Area Requirement Remarks 12. Quality Periodic Training sessions conducted within the organization in areas of Communication, Leadership, Presentation, Technical subjects like Taxation, Corporate and Allied Laws, Business Processes, Technological changes, etc. Employees can conduct research on the above topics and provide training sessions for the team 13. Quality Implement a periodic feedback system where employees and the employer can share feedback on performance and highlight areas where improvement is needed 14. Quality Implementation of a Profit and Cost Tracking mechanism for engagements conducted by the firm for analysis
- 24. Questions and Thanks 24 The presentation and information contained therein are intended for educational purposes only and do not replace independent professional judgement. Statements, views, thoughts, and opinions expressed in the presentation belong solely to the presenter, and not necessarily to any entity with the presenter is associated with. The information contained in this presentation is of a general nature and is not intended to address the circumstances of any particular individual or entity. The presenter disclaims any liability to any person or entity in respect of anything as the technical contents. One should act on information only after seeking professional advice and after a thorough examination of facts of the particular situation. CA Bharath Rao www.bharathraob.com mailme@bharathraob.com +91 88922 29220