Process Monitoring In Accounting: Implementing Pre-Control Charts

Abstract

This research paper has two primary goals. The first is to briefly discuss how control charts and pre-control charts can be applied to non-manufacturing processes, including how companies can use control charts and pre-control charts to improve business processes, financial reporting processes, auditing methods, and tax accounting processes. The second goal is to illustrate how pre-control can be applied to an accounting process. An example is used to demonstrate implementation of Six Sigma techniques for monitoring company expense budget variances.

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