Strategic reporting methodology and its reliability audit

Abstract

The paper reveals the significance of business entities' forecasting and strategic reporting. The reporting appears to be an essential source of information for highly efficient strategic management and profits receivable for internal users. Financial activity of Rostov and Krasnodar region's business entities of different incorporations and industries was taken as an object of current research. Authors developed specific classification of forecasting reporting forms and key performance indicators' framework depending on aims and objectives Authors proved strong need in development of strategic reporting methodology. Reporting drawn up according to the methodology allows generating informational support of analysis and control of business entities core strategies' implementing, including internal and external factors & risks' to increase the capital and firm value. The paper highlights strategy audit features as well, considered as related services according to the Federal Law on Auditing. Authors provide the term and stages of strategy audit. The research resulted in development of special strategic reporting software “Strategic, capital-value oriented reporting framework”, special auditing software “Strategic business entities activity audit” coupled with detailed algorithm description.