OPERATIONS AUDIT: DISCUSSION ASSIGNMENT WEEK 5

THE SEVEN Es TO SUCCESS

As we examine how organizations operate, it becomes apparent that for many of them some things are not working out as they should. In general, there are more meetings but less communication. There are more tools at our disposal, but less time to get things done. There is more data, but less insight. Customers want to shop when they want to, for the items they want, get everything at a great price, and receive superior customer service during their entire experience. It is abundantly clear that organizations need to execute well every time because their customers demand it. If they don’t execute well, then the competition will.

Internal auditors should remember that audits are conducted as a means to assess conditions within the client’s organization. They are conducted with the objective of helping them improve their structure and their operating practices. Planning and performing an operational audit, then, should focus on management practices that facilitate or hinder the accomplishment of objectives.

Here are the seven Es that can help the organization and the auditors to organize and assess their operational policies:

Effectiveness
Efficiency
Economy
Excellence
Ethics
Equity
Ecology

DISCUSSION FORUM ASSIGNMENT

AMONG ALL THE Es DISCUSSED, SELECT THE BEST "E" THAT HAS THE GREATEST IMPACT TO AN ORGANIZATION?

Please provide your answers with a minimum of 200 words and a maximum of 500 words. Please observe proper citation and use APA format 7th edition.

FOLLOW THESE INSTRUCTIONS:

(1) INDICATE YOUR FULL NAME AND STUDENT NUMBER at the end of your post

(2) IF YOUR POST IS MORE THAN 300 WORDS, PLEASE SPLIT IT INTO TWO OR THREE POSTS. The 2nd and 3rd posts will be posted as a reply to create a THREAD like conversation.

(3) REPLY TO AT LEAST THREE of your classmates' perspectives to the best Es that impacts an organization. PLEASE MAKE A SUBSTANTIAL REPLY. Any reply without substance will not be graded.

Cut-off date in posting to this discussion forum is until November 28, 2021 11:59PM Philippine Time.

NOTE: Do not create a new question in the Discussion Forum in E-RTU. Please answer directly on the discussion link posted by Prof. Markie Grabillo.

Comments

Ericka MañalacNovember 21, 2021 at 10:36 PM
Among all the E’s discussed, select the best “E” that has the greatest impact to an organization.

The possession of all the 7 Es is crucial in achieving the organization’s objective and leading them to success. All of the elements are important and have a great impact to the organization, but I want to emphasize the importance of effectiveness, which I think has the greatest impact.

Effectiveness relates to the process of evaluating the degree of which the organization, program, or process is achieving its goals and objectives. Objectives and goals provide identifiable markers of the achievement of something and, as one of the goals of operational audit is to meet the objectives of an organization it is important to evaluate and to have knowledge if the processes, procedures, and policies, including the other elements of the 7 Es, are effective enough to achieve its objectives and goals. Another importance of it is, through comparing the planned outputs with the actual outputs, the organization will know if they are making progress in their efforts to achieve their stated mission, as the organization’s mission, including its vision, serves as a guide to its target destination. And once the degree of its achievement is identified, the organization can establish appropriate actions to work toward its goals and objectives.

References:

ACI Learning, Audit. (2021, August 4). The 8 Es of Operational Audit Excellence - ACI Learning’s Webinar Series 2021 [Video]. YouTube. https://www.youtube.com/watch?v=QLBmTq8DO4A&feature=youtu.be

Murdock, H. (2016). Operational Auditing: Principles and Techniques for a Changing World (Internal Audit and IT Audit) (1st ed.). Auerbach Publications.

2015-100842
MAÑALAC, ERICKA

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Jerick E. GuasinNovember 22, 2021 at 6:42 PM
Effectiveness is the best E that has the most influence on a company. Though all of the other E's are important components of good management. All of the others are encompassed by effectiveness. Effectiveness is described as an organization's capacity to achieve desired goals and achieve business success (Zane, 2021). This E establishes the criteria for obtaining the desired results from the output or performing the proper actions. Rather than just attempting to be efficient, aiming to prioritize the organization's objectives results in satisfaction and establishes real ties with clients. According to the Canadian Audit and Accountability Foundation (2021), any business's top objective should be effectiveness, followed by the development of efficient methods. This is because a system can be economical and efficient without being effective; that is, it can be extremely effective at delivering incorrect output. As a result, effectiveness raises the quality of work and strives for the greatest potential outcome regardless of the resources available. Though it requires more resources, it is vital to carry out activities successfully in order to generate profits and growth, which is the goal of all businesses. Then efficiency and other E's can follow. As written by Stid and Kramer (2021), effectiveness also indicates strength in the following areas: leadership, decisions, people, managerial processes, and lastly, culture. These qualities are highly valued in a company since they will contribute to the organization's growth and development in the face of competition. We may state that each major area is linked to a goal that can help an organization's effectiveness. These aspects are also influenced by effectiveness, which, when utilized to its full capacity, may considerably lead to the development of an excellent outcome in the organization. When leadership is effective, it has a defined vision and set of priorities. Being in a management role allows you to direct and supervise the flow of information inside the firm. When decision making and structure are effective, there are clear roles and responsibilities for decisions. This raises staff awareness of potential protocols, ensuring that they do not mislead management. When people are effectively deployed, their talents are aligned to fulfill the company's goals. Work processes and systems, when effective, exercise superior execution of programmatic work processes, resulting in data and account management that is reliable. When a culture is effective, it encourages each worker to practice high performance values and behaviors. Effectiveness encompasses all of the E's since an effective organization has a significant impact not just on its outcomes but also on its stakeholders. Providing a focused and holistic effort to continue striving for development, whose effectiveness will be worth more than all who aspire to serve.

Jerick E. Guasin ; 2019-105702
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John Carlo B. De VeraNovember 22, 2021 at 10:21 PM
The 7 Es discussed are a vital concept an organization should have because it truly add adequate and substantial value to provide engagement and show audit to the clients (Murdock, 2017). All the component of the 7 Es are as significant as the other but between the seven concepts the greatest or best concept that would make an impact to an organization would be ethics. Ethics is defined as the rules or principles an individual believed in. Based on Murdock (2017), that the Merriam-Webster dictionary defines it as the rukes if behavior where a person or a group of people base their idea about what is morally right or wrong. I believe that in order for an organization to foster success, having a substantial standards or ethics would govern every employee or every person in an organization to act in a certain way that is acceptable. Thus, having a great ethis foundation in an organization would definitely help each and everyone to execute things in accordance with the ethics. Hence, everyone would be aware on the importance of acting or moving in accordance with the standard of the company. Moreover I believe that having a standard on doing something will promote effectivity and efficiency in the execution of the objectives and goals of the orgnizarion. Furthermore, according to Murdock (2017), being ethical is not only merely following the law or doing what society or the company accepts but rather abiding to the things that the organiztion build in order to comply and prescribe the rightful things to do which will eventually have essential effect on the progress and success of the company. Ultimately, on my own bellief ethics will definitely have the greatest effect or imact on the endeavor of every single individual in an organization but also to the organization's goal and objectives in general.

REFERENCE:
Murdock, H. (2017). Operational Auditing: Principles and Techniques for a Changing World. CRC Press Taylor and Francis Group.

DE VERA, JOHN CARLO B.
2019-104382
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Anthony "Baks" MangilogNovember 22, 2021 at 11:28 PM
There are seven Es in operational auditing wherein internal auditors applied in conducting internal auditing to provide or add value to their work. Wherein the seven Es is will help the organization to its success. The seven Es listed below can assist organizations and auditors in organizing and evaluating their operational policies: Effectiveness, efficiency, economy, excellence, ethics, equity, and ecology.
Among the seven Es listed above, I believe the most important “E” for an organization is effectiveness. In a book from Murdock (2016), effectiveness is measured in achieving intended outcomes; therefore, if the program or process under examination lacks clearly stated objectives, it is impossible to assess the efficacy using hearsay rather than actual data.
Every organization has goals, missions, and vision. Why so? Those vision, mission, and goals will be the guidance and directive to check if its effective for the organization to thrive. Lack of definition of those will lead the company to its failure. The absence of clear objectives has consequences for the overall audit and the possibility of a lack of mission clarity inside the unit being audited.
As discussed in the last discussion, effectiveness is the center of all because it drives success. Having clearly defined objectives, goals, mission, and vision will assure the success of an organization. That’s why I chose effectiveness as the most important among all the seven Es discussed.

references:
Murdock, H. (2016). Operational Auditing: Principles and Techniques for a Changing World (Internal Audit and IT Audit) (1st ed.). Auerbach Publications.

Grabillo, M. (2021, November 20). OPERATIONS AUDIT: DISCUSSION ASSIGNMENT WEEK 5. GLIMPSE OF A CPA’S MIND. Retrieved November 23, 2021, from https://markgrabillo.blogspot.com/2021/11/operations-audit-discussion-assignment.html

Mangilog, Anthony C. 2019-104415
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Lovely BangateNovember 23, 2021 at 4:09 AM
Being ethical is not the same as merely following the law. Being ethical is not the same as doing whatever society accepts. Being and acting ethically refers to abiding by well-founded standards of right and wrong that prescribe what individuals should do. It begins with a way of thinking about the world, and the societal environment in which the organization and individual operates. It is also concerned with the impacts the decisions and actions have on others in the short and longer-term( Murdock, 2016).

I considered ethics as the most crucial component to business success because Ethics affect the organization as it influences the behavior and the decisions of the top management in meeting their shared goals. Considering there are various means to attain the goals, some either done ethically or unethically, ethics programs become an integral instrument to keep the organization united to meet its long-term objectives. Without ethics, the employees-management relationship becomes weak. If there's any presence of immoral mandates during the operations, thus this makes employees unmotivated or, worst case increases the labor turnover. A good illustration of these is an unsafe working environment, unconscionably low compensation, and the intimidation or abuse of its laborers.

In addition, fraud is likely to occur since there is no stringent governance to implement policies in accordance with standards. As a consequence, the shareholder's confidence toward the responsible administrators will vanish, leading them to pull their stocks out of the company and abrupt drop in its stock prices. Likewise, their reputation will be damaged to the public if it was proved that it has a fraudulent representation of its products. An example of this includes misleading ads, using fake reviews, data-privacy breaches, and unsafe product content. For instance, due to high competition, the management wishes to have cost-cutting the input to charge the product price cheaper, despite being aware of compromising the safety of the users.

In conclusion, integrity and honesty in the organization must be observed at all times to avoid the economic outflow of resources due to penalties. Moreover, it helps the company gain trust from stakeholders, which increases its profitability. Be mindful even if an unethical act is legal, the end does not justify the means.

References:

Murdock, H. (2016). Operational auditing: Principles and techniques for a changing world. (Internal Audit and IT Audit) (1st ed.). Auerbach Publications.

-BANGATE, LOVELY V. (2019-104176)
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UnknownNovember 23, 2021 at 7:40 PM
If there's a seven wonders of the world, there's also a seven E's that makes an entity to be on top of the business world. These are called keys needed for an entity to enter the world of success such as the spare for effectiveness, efficiency, economy, excellence, ethics, equity, and ecology. However, I find one of them as the best E that has the greatest impact to an organization. We may vary in choices but it doesn't mean that one of us had to let go.

With my best effort, I have chosen to give my trust to the key of excellence. It didn't mean that an entity must embraced the word 'perfection' in fact, excellence is something that is done while striving hard. When I think of excellence, I have this thought of having a good performance-the output, and inputs which can produce satisfactions to the clients or customers. It is having a good quality and good quantity. Usually, when we hear the word excellence, it measures the satisfaction received by individuals who have interest on the business. Excellence is not overheard by the mere eavesdropping from your neighborhood, believe it or not, the birth of it starts in the internal framework of an entity.

1/3

AGULLO, JAMAICA MAE A.
2019-105485

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Lovely Rose GriarteNovember 23, 2021 at 8:25 PM
Among all the Es discussed, select the best "E" that has the greatest impact on an organization.

The 7 Es is a useful guideline that guarantees success in business organizations. In this trying time of the pandemic, numerous businesses chose to discontinue their operations because they did not anticipate the huge impact of the virus that affects their profitability and competitiveness in the industry. Hence, in order to avoid bankruptcy, the 7 Es may help entrepreneurs to be on track in making sound economic decisions.

The 7 Es include Economy, Efficiency, Effectiveness, Ethics, Equity, Ecology, and Excellence. Out of these, in my opinion, the most valuable E is Efficiency that talks about the ability of an organization to accomplish something with the least amount of inputs. The efficiency of an operation will lead to effectiveness and success.

If an operation is denoted as efficient, then it is also considered effective. On the other hand, one's effectiveness in operations does not necessarily imply efficiency. The reason behind this is because an entity may achieve their goals and objectives– be effective, but they may not have minimized the inputs used and thus affects the efficiency and profitability of the business. But, if an operation is performed in an efficient manner using the least possible materials without risking the quality, then the operation is deemed to be effective since the goals of the organization will certainly be achieved.

Thus, the overall success of a venture relies on the efficiency of an operation and therefore affects the other 6 Es stated.

References:
Murdock, H. (2017). Operational Auditing: Principles and Techniques for a Changing World. CRC Press Taylor & Francis Group. pp 205 - 208

Goger, A. (2018). Efficiency and Effectiveness: Know the Difference. Retrieved on November 24, 2021, https://www.facilitiesnet.com/maintenanceoperations/article/Efficiency-and-Effectiveness-Know-the-Difference--17835

Griarte, Lovely Rose B.
2019-105060
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Lovely Rose GriarteNovember 23, 2021 at 8:33 PM
Good day, Mr. Cedo!

I agree with your ideas. For me, the most valuable E is also Efficiency because it relates to the entity's usage of materials or inputs. If an organization is Efficient they would definitely become Effective as well since the goals will be achieved.

Thanks for sharing your great thoughts!
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GLORENE MORENONovember 24, 2021 at 12:54 AM
As I see it, among the seven E’s in operational audit the best “E” that has the greatest impact to an organization is Ethics. It could be Excellence because it can definitely bring money and power to an organization and it helps business to win clients in an extremely competitive environment but that may also mean neglecting the company employee’s morale and rights. According to Horton (2021), building on a foundation of ethical behavior helps create long-lasting positive effects for a company, including the ability to attract and retain highly talented individuals, and building and maintaining a positive reputation within the community. Running a business in an ethical manner from the top down builds a stronger bond between individuals on the management team, further creating stability within the company.

Ethics is the most important because when management is leading an organization in an ethical manner, employees follow in those footsteps. Employees make better decisions in less time with business ethics as a guiding principle; this increases productivity and overall employee morale. When employees complete work in a way that is based on honesty and integrity, the whole organization benefits. Employees who work for a corporation that demands a high standard of business ethics in all facets of operations are more likely to perform their job duties at a higher level and are also more inclined to stay loyal to that organization.

Reference:
Horton, M. (September 2021). The Importance of Business Ethics. https://www.investopedia.com/ask/answers/040815/why-are-business-ethics-important.asp

MORENO, GLORENE MAE R.
2019-105014
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Princess Mae ArabitNovember 24, 2021 at 1:37 AM
The Es would lead the organization to succeed in attaining its goal, which is to be successful and sustainable. For me, among all the Es to success, the one that has the greatest impact on an organization is "Effectiveness."

Every organization has a mission and vision and goals and objectives that motivate employees to work toward their fulfillment. Without a mission and vision, the organization is like walking down the street with eyes closed, not knowing where going or where the path leads. Goals and objectives provide identifiable markers of achievement and help establish tactical actions to work toward. These are more immediate and assist in allocating resources such as budgets and projects that can be aligned with the mission.

How do we know if we are achieving the goals and objectives set for ourselves? The answer lies in the concept of effectiveness (Murdock, 2017). The ability to achieve the organization's goals is referred to as effectiveness. Determining the extent to which an organization, program, or process is achieving its goals and objectives is known as effectiveness. The effectiveness is determined by comparing the planned outputs to the actual outputs. Effectiveness has to do with knowing whether simply adhering to existing policies and procedures is insufficient; whether the methods are appropriate and enable the achievement of the objectives.

We can know the progress we're making with effectiveness, whether we are close enough or far behind achieving the goal. If there is a discrepancy, internal auditors can develop appropriate policies and procedures to help the business achieve its objectives.

Reference:
Murdock, H. (2017). Operational Auditing: Principles and Techniques for a Changing World. CRC Press Taylor and Francis Group.

ARABIT, PRINCESS MAE D.
2019-103719
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UnknownNovember 24, 2021 at 6:37 AM
All seven E's contributed significantly to good management in operational auditing, but if I had to pick one, it would be ethics. Ethics is a branch of philosophy concerned with human behavior, specifically the behavior of individuals in society. It investigates what is morally correct or incorrect, just or unjust. Individuals demonstrate independence when they choose to distance themselves as much as possible from their training during a decision-making process. It will be seen that making ethical decisions is difficult in the sense that this operation requires a level of lucidity that allows us to judge objectively and choose which path to take.

According to Murdock (2017), being ethical is more than just following the law or doing what society or the company accepts, but also adhering to the things that the organization has built in order to comply and prescribe the rightful things to do, which will eventually have an important effect on the company's progress and success. Organizations must establish their ethical expectations and create support mechanisms to encourage compliance and provide a means to track it all. With this, it is clear that ethics has a significant impact on the organization because it benefits not only the individual but also the organization's goals and objectives.

In connection to the different fraud that happens this days, having ethics that promote integrity can be of help on preventing it. According to a Report to The Nation 2020 survey, a code of ethics plays a major role as an anti-fraud control that can prevent fraud, amounting to 81%. This ethics establishes ethical and moral standards in a company so that everyone is held accountable for all actions, especially those that break the code of ethics. The code of ethics outlines a set of ethical principles that demonstrate to the general public that the corporation is behaving in the public's best interests. Transparency in business builds public trust and decreases the risk of an internal scandal or wrongdoing. Avoiding unethical business activities will not only help the firm build a positive reputation, but it will also protect the company from legal action.

References:
• Canada.ca (2015). What is Ethics. Retrieved on Nov. 24, 2021 from https://www.canada.ca/en/treasury-board-secretariat/services/values-ethics/code/what-is-ethics.html

• Integrity (2020). The Importanc of Code of Ethics Training in Anticipating Fraud. Retrieved on Nov. 24, 2021 from https://www.integrity-indonesia.com/blog/2020/08/26/the-importance-of-code-of-ethics-training-in-anticipating-fraud/

• Murdock, H. (2017). Operational Auditing: Principles and Techniques for a Changing World. CRC Press Taylor and Francis Group.

-BERTIZ, COLINE B. (2019-100749)
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UnknownNovember 24, 2021 at 7:15 AM
Hi John Joseph!

I agree that efficiency has a significant impact on the organization because much of what we have is limited, and it is critical to conserve it while maintaining a reasonable level of productivity to achieve specific goal. You have such an innovative way of thinking at things and I could tell you put a lot of time and thought into your work. Thank you for contributing such brilliant thoughts!

- Bertiz, Coline B. (2019-100749)
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Catherine BulingNovember 24, 2021 at 7:49 AM
Among all the 7 Es that we have discussed, the best E, in my opinion, that has the greatest impact to an organization is efficiency. According to Murdock (2017), Efficiency relates to the use of inputs and other resources toward the achievement of goals and objectives in some form of productive activity. All organizations should strive to be efficient to be successful. Efficiency is a measure of a company's productivity. It assessed how effectively a business uses its resources to achieve its goals and objectives. In addition, it also means lowering the cost of production and the amount of time it takes to provide a product or service.
The efficiency of an organization is a good indicator of how successful it will be in the long run. It also entails better resource allocation while carrying out the specified tasks without committing mistakes, because mistakes not only harm a company's reputation, but also prevent its development. Continuous assessment, monitoring, and management of resources, modification of operating processes, and, when necessary, redesigning operations associated with the production of goods and services are all ways to achieve long-term efficiency gains. Moreover, efficiency enables organizations to free up finances for new developments and ideas, which promotes innovation. Thus, efficiency allows the organization to save money, to ensure accountability, to provide the right environment and to improve communication within the organization.

Reference:

Murdock, H. (2017). Operational Auditing Principles and Techniques for a Changing World. Taylor & Francis group.

-BULING, CATHERINE

2019-103626
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Don Luis M. VillanuevaNovember 25, 2021 at 2:16 AM
For me, the best "E" that has the greatest impact to an organization is ETHICS. Ethics in relation to auditing is a inspection or examination of processes or systems to ensure compliance with ethics-related requirements. It is an investigation into how well, or poorly, a company or organisation conforms to the ethical standards of its industry or society in general.
Why ethics? Ethics can be the center of all Es, it is connected to all. Ethics is conducting acceptable norms, practices and ethical standards that has a factor to the organization. It's like doing or choosing the right thing in conducting a business. Doing ethical practices can lead to effectiveness in the organization, it will serve as guidance to perform well. Efficiency can relate to ethics in a manner of proper extraction of resources, right handling with people or employee that will result in maximizing the output. Ethics affects the excellence of the business by proposing the 3Ps, the profit, people and planet. In that way, the organization can attain it's excellency by caring and complying with the 3ps. Also economy relate to ethics in managing resources ethically. Equity with conducting such ethical standards and equal or fair treatment for the people or employees in ways of no discrimination of race, religion and sexuality. Ecology with compliance with the planet and taking a good care of it. Ethics will lead to a better and sustainable planet, environment and ecology.
Ethics has the greatest impact to an organization, it ensure the organization to comply with attaining operational objectives in a right and honest manner, directs financial reporting to become aware to its profit and at the same time, protecting its people and planet, and always complying with the compliance objective by following the rules and regulations and laws that will leads to an environmental friendly practices.

Reference:
Morris, A., (2020). Davidsonmorris.com. Available at:

-Villanueva, Don Luis M. (CBET 01-503A)
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Don Luis M. VillanuevaNovember 25, 2021 at 2:29 AM
Hi John Joseph,
We have different thoughts about the best Es but I agreed that efficiency is also important in the business. It is using our resources to maximize our profit. Your work is informative, thank you.

Don Luis M. Villanueva (2019-102313)
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AnonymousNovember 25, 2021 at 5:51 AM
Every organization cannot deny the fact that they encounter some problems and deficiencies as they operate their businesses. With these backdrop, there is a model that serve as a tool to help auditors add value to the organization and shows the clients that they really want to contribute to the organization’s success. This model is called 7Es. Those seven are effectiveness, efficiency, excellence, economy, ethics, equity, and ecology, and they are all interconnected to each other.

Among those 7Es, I believe that effectiveness has the greatest impact to an organization as it sets and establish the mission, vision, goals and objectives of an entity. Without mission and vision, business is nothing. These two help direct the organization by outlining the performance standards and metrics of the employees and the business itself. It ensures that everyone is working towards a single purpose. Furthermore, it embodies business hopes and ideals that bring glimpses of what is possible. Similarly, goals and objectives are also important that helps trigger the organization to do something new and better. It helps individual to increase their effort and motivation that leads to high performance in the workplace.

Having the said things, an organization can assess if the operations are effective. All of these are important as it sets clear destination towards in not just a success, but in a long-term success.

REFERENCE:
Murdock, H. (2017). Operational Auditing Principles and Techniques for a Changing World. Taylor & Francis group.

-HEDREYDA, HILARY N. (2019-103876)
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Jerick E. GuasinNovember 25, 2021 at 5:57 AM
Hi, Bernard!

I agree with your idea that efficiency is the very core of every E discussed. Also, I appreciate how you further elaborated - one-by-one the E's - and prove why efficiency comes with it.

I would love to read more of your thoughts for upcoming tasks!

- Jerick E. Guasin ; 2019-105702
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Erica C. BandolaNovember 25, 2021 at 7:24 AM
Operational auditing in the broad sense can be a lot of work for an auditor of a company. This just not only focuses on a specific department in a company, or inspecting a manufacturing process of creating a particular product to produce in the market that needs supervision and inspection. Operational auditing refers to the evaluation of overall operation of an entity in a manner of inspecting the policies, standards, laws and regulations applied and others. The seven E’s in the operational audit will serve the organization not just as a guide for the evaluations but also serves as the framework to be followed in order to achieve the objectives of the business. Among the seven E’s, I think the most important and has the greatest impact in the organization is the effectiveness of the forecasted plan. In the previous discussions, we tackled the phases of operational audit which contains the four phases; planning, fieldwork, reporting, and feedback phases. These phases would not be successful without the effectiveness of plans that were previously laid out by the auditors and the management of the firm. A successful audit does not end creating plans to conduct the whole operation, this phase, as we all know, is just the beginning of a critical and sophisticated assessment of information, policies and standards to be taken up by an entity. Thus, getting the results that the auditor expects at the end of the period is the most significant among all other phases conducted. If the objectives of the company are achieved at the end, this means that the assessments done are in accordance with the policies and standards, the risks present are controllable and managed well, the framework adapted are effective, and the staff assigned to their particular duties are efficient to do the tasks well.

- BANDOLA, ERICA C. (2019-105307)
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AnonymousNovember 25, 2021 at 8:02 AM
The 7Es are intended to assist auditors in maximizing the company and demonstrating to clients that they truly want to make a contribution to the organizational progress. These seven elements are inextricably linked. When these E’s are being used in the type of concepts, they can help the auditor add significant value to the involvement and demonstrate to audit clients that auditors are sincerely interested in supporting the organization's success.

All of these 7e’s are all crucial in the success of the organization, but for me, efficiency has the greatest impact to an organization. It is a quantifiable concept that can be calculated by dividing desirable output by total input. It reduces waste of availability of physical materials, energy, and time while achieving the required output. Because all inputs are scarce, efficiency is an important characteristic; time, money, and raw materials are all finite resources that must be conserved. An efficient organization is better able to achieve its goals and compete. The efficient use of input information and other resources toward the accomplishment of objectives in some form of productive work. Efficient firms maximize outputs from given inputs and thus reduce costs. A company's costs can be reduced and its competitiveness improved by increasing efficiency.

Murdock, H. (2017). Operational Auditing Principles and Techniques for a Changing World. Taylor & Francis group.

SALVO, MARY ROSE E., 2019-102485
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Joylyn TicalaNovember 25, 2021 at 8:10 AM
Operational auditing primarily focuses on identifying opportunities to improve the efficiency and effectiveness of an organization's operations. We all know that every organization possesses mission, vision, goals, and objective that guide them to success. The 7 ES provide a simple, yet effective model to keep these essential concepts in mind. The 7Es are effectiveness, efficiency, economy, excellence, ethics, equity, and ecology. Of them all, the best concept, in my opinion, is the effectiveness. Effectiveness refers to how well an organization accomplishes its objective. It shows how an organization are making progress in their efforts to achieve their set mission, vision, goals, and objectives.

Effectiveness consists of comparing the planned outputs with the actual outputs (Murdock, 2017 p. 86). Meaning, effectivity is measured by expressing how well a company’s net profitability is to be compare to its target profitability. To see if an organization’s strategic and operating plans are effective, the company should examine whether these plans and strategies are in line with the organization’s objective and goals. If the resources used in planning delivers an expected result, then we can say that the strategy is effective. Also, to determine if a strategy and operational plans are effective, the organization should measure the performance and see to it if it will achieve your company’s objective.

Murdock, H. (2017). Operational Auditing: Principles and Techniques for a Changing World. CRC Press Taylor and Francis Group.

TICALA, JOYLYN L. (2019-103552)
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AnonymousNovember 25, 2021 at 8:15 AM
Hello, Joseph! I appreciate how you developed excellent explanations, and I'd also like to compliment you on your writing style, which is fluent and clear. I completely agree with your assessment of efficiency and its value to the organization. Great work!

10/10

SALVO, MARY ROSE E., 2019-102485
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Patricia Lynn D. GuamosNovember 25, 2021 at 5:28 PM

Effectiveness, efficiency, economy, excellence, ethics, equity, and environment are the seven Es. The 7Es are intended to assist auditors in adding value to the business and demonstrating to clients that they genuinely want to contribute to the firm's success. These seven aspects are inextricably linked. Effectiveness refers to attaining specified goals and objectives while using as few resources as possible, whereas delivering exceptional goods or services relates to an organization's efficiency. The economy encourages organizations to do what they need to provide quality, which is synonymous with excellence. In addition, we must continuously operate with honesty and integrity, and we must promote equity at all times. When providing goods and services, we must protect the environment (Murdock 2016 pp. 8695). If these are met or followed by an organization, the chances of success are pretty high. The assistance of these 7Es ensures an organization's success if introduced and strictly followed since it assists in evaluating operational processes to see if they are aligned with an organization's willingness to reach its goals and objectives. Among the 7Es, I believe the most crucial is effectiveness.
Effectiveness affects the organization's strategic and operating plans. The point of a company relates to how successfully it achieves its goals. It demonstrates how an organization is progressing to fulfill its purpose, vision, goals, and objectives. The term "effectiveness" refers to comparing planned outputs with actual results (Murdock, 2016 p. 86). In other words, effectivity is assessed by stating how well a company's net profit compares to its target profit. To determine the effectiveness of an organization's strategic and operational plans, the firm should analyze if these plans and strategies correspond with the organization's objectives and goals. If the resources utilized in planning produce the desired outcome, we may say that the process is effective. Furthermore, to evaluate if a design and operational plans are effective, the organization should monitor performance if it will meet the company's goal.

Melissa Kayla Maniulit, CHAPTER 4 1. List the 7 Es and explain how they impact organizational success, PDFCOFFEE, Time Retrieved 2:14PM
https://pdfcoffee.com/keme-chap-4-pdf-free.html

GUAMOS, PATRICIA LYNN D. 2019-103828

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AnonymousNovember 25, 2021 at 7:11 PM
The objective of 7Es is to lend a hand to organizations and auditors to increase value to the operations of the business and to secure the success of the organization. While these 7Es are interconnected to each other, the one that has the greatest impact on an organization is effectiveness. This refers to a concept that measures the efficiency of an organization in meeting its goals and objectives by efficiently using various resources and time. An organization is considered to be effective if it can manage to run like a well-designed, well-oiled machine as every part of the organization needs to function smoothly in order to produce the results the company aims to obtain. Moreover, connected to organizational effectiveness are the well-defined goals for employees and outlining ways to efficiently execute those goals set by the leaders and managers. Also, the implementation of clear decision-making processes and the quality of work performed by the employees. According to Richard et al. (2009), organizational effectiveness captures organizational performance plus the myriad internal performance outcomes normally associated with more efficient or effective operations and other external measures that relate to considerations that are broader than those simply associated with economic valuation. Thus, it serves as the modern way to guide multiple organizations to achieve their mission and vision.

The more effective an organization is, the more chances it has to survive and flourish throughout the years (Iñiguez, 2021). That shows how critical effectiveness is to an organization to prolong its life. An organization must have well-implemented organizational processes that are essential to be learned and practiced daily to further attain effectiveness. They must be evaluated and analyzed from time to time to create a revision to find out what certain areas are needed to be emphasized for improvement. Aside from that, leadership also plays a key role for the organization to become more effective in the following years. It contributes to making strategies and tactics, setting teams’ direction by creating the organization’s mission and vision, alignment of established goals and objectives in the entire organization, accountability and proper usage of different resources and engagement of the employees.

References:

Iñiguez, L. (2021, March 22). How to improve organizational effectiveness : A guide to boost work performance. Hirebook. https://www.hirebook.com/blog/organizational-effectiveness-7-ways-to-improve-work-performance?hs_amp=true

Richard et al. (2009): Measuring Organizational Performance: Towards Methodological Best Practice. Journal of Management.

BALAYSOCHE, STEPHANIE (2019-101856)
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Airon Nicole JadraqueNovember 25, 2021 at 8:23 PM
The Seven E's are pivotal in making the company's foundation stronger and it helps them to achieve their goals and objectives by affecting their organizational success. The 7Es are designed to help auditors add value to the organization and show the clients that they really want to contribute in achieving the aimed success of organizations and or of the management.

Upon identifying and analyzing each of the Seven E's, I have chosen effectiveness as the most important and has the greatest impact on an organization. To define effectiveness "it refers to the level of quality with which a task or process is carried out that ultimately leads to higher overall business performance. Effectiveness also means how efficient an operation or activity is at achieving its goal and the company’s overall objective" ("What is Effectiveness?" n.d.). Basically, to simply put, it is how well a business and the people in it perform value-creating tasks, and how well the business functions work together.

If a business is working effectively, then it will result in the betterment of everybody and of the company itself. It will surely last longer. The quality of work is not substandard since the process, policies, and other regulations are effectively implemented, and the people working provide effective work and results. Additionally, internal auditing is effective if it provides the audit committee and executive management with the assurance they need, namely that they can rely on the organization's processes and systems to manage risks to the achievement of the organization's objectives. In short, the effectiveness has the greatest impact among all other E's, and effectiveness per se of an organization or management will help pave its own path towards the betterment of the welfare of everyone.

What is Effectiveness? My Accounting Course. Retrieved November 26, 2021, from https://www.myaccountingcourse.com/accounting-dictionary/effectiveness

JADRAQUE, AIRON NICOLE T.
2019-101826
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UnknownNovember 25, 2021 at 10:04 PM
The 7 Es, which play a crucial role in an organization's success or failure, are frequently included in the project scope of operational audits. If applied in the form of themes, these Es can enable the auditor to share and contribute significant value to the engagement and demonstrate to audit clients that they are deeply interested in their success (Murdock, 2016). I must say that all of the Es are useful and beneficial but the one which has the greatest impact to an organization is effectiveness. The primary goal of the business to attain its goals and objectives and meet the expectations of the board. We must determine whether the strategies and approaches utilized in everyday operations are in accordance with the company's goals in order to correctly recognize and estimate the degree of success. Effectiveness is determined by comparing a company's net profitability to its projected performance. We can assert that a strategy is successful if the efforts undertaken in planning provide the desired outcome. To assess whether a policy and action plan are feasible, the business should track performance and see if they satisfy the company's objectives. The company’s effectiveness should always be properly analyzed for it to be able to constantly grow and develop as a business.

References:

Murdock, H. (2016). Operational Auditing: Principles and Techniques for a Changing World.
Taylor & Francis Group, LLC.

LEYCO, PATRICIA DENISE P. (2019-101438)
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Angelika D. FranciaNovember 25, 2021 at 11:03 PM
The Es indicate seven topic areas that are important for conducting operational audits. The seven Es are effectiveness, efficiency, economy, excellence, ethics, equity and ecology. Among all the Es, excellence has the most impact to an organization. This concept refers to the production of high-quality work. Quality in every work is important for long-term success. Measuring quality is necessary in order to determine whether or not it is being met, and it is a significant value aspect when selling to customers. As a result, organizations should intensify their efforts to pursue a quality-based differentiating strategy. Differentiation is based on the perceived value that customers gain from the product or service and, when designed and implemented appropriately, it may result in higher profitability (Murdock, 2017 & 2020).
In its review process, every internal audit should involve an analysis of assessing the quality of the job completed, and all services must reach the aspect of providing an outstanding customer service to their customers. And according to Murdock, this concept should be applied to all organizations, plans, and procedures. Insufficient workmanship, lack of durability, and other comparable deficiencies present risks to the organization. These risks are typically reflected in higher-than-necessary returns, warranty claims, complaints, customer turnover, and a poor reputation.

References:
Murdock, H. (2017). Operational Auditing: Principles and Techniques for a Changing World. CRC Press Taylor & Francis Group. p.88
Murdock, H. (2020). The Eight Es. https://www.xpertsleague.com/the-eight-es/#.YZwun1VByG4

-FRANCIA, ANGELIKA D. (2019-101440)
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Rhea Lyn MendozaNovember 25, 2021 at 11:16 PM
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Rhea Lyn MendozaNovember 25, 2021 at 11:35 PM
Internal audit effectiveness is articulated by the internal audit 7Es as a whole. These principles must be existent and operational for an internal audit function to be considered effective. How an internal auditor, as well as the audit activity illustrates attainment of the objectives vary from organization to organization, but failure to meet any of the 7E’s implies that an internal audit activity was not as effective as it could have been in achieving internal audit's objective.

Among all the Es discussed, the following has the greatest impact for an organization:

Effectiveness and efficiency have a lot to do with the operation of a business. Every business strives to achieve its predetermined goals and objectives, with a particular emphasis on its ability, continued existence and profitability. For doing so, effectiveness and efficiency are extremely important. A business can significantly increase its level based on these two principles. As a result, it is critical for a company to maintain its effectiveness and efficiency on a continuous basis. Businesses that are highly efficient are the most successful. When management makes efficient use of resources, it is able to maximize production and workforce utilization.

Internal auditors should understand the underlying concepts that define ethical thought and use that knowledge to review and recommend improvements. Lack of ethics is a major cause of inappropriate conduct and has serious consequences in policy making and organizational behavior. It is critical for internal auditors to recognize some core aspects, what it means, and its importance in order to have a better audit ethics. (Murdock, 2016)
According to the journal “How and Why Workplace Ethics are Important”, every organization has an ethical code that guides its decision-making process and activities, allowing it to increase productivity while keeping its positive image. Also, company staff who are morally positive, resourceful, and highly motivated by principles of fairness and decency in the workplace boost overall morale and improve organizational performance.

Therefore, having these three important Es with effective and proper implementations of principles will contribute to the development and improvement of the internal audit of the organization, which will have a positive impact on the operation and continuity of business activities while safeguarding the interests of those involved.

References:

Murdock, H. (2016). Operational Auditing: Principles and Techniques for a Changing World (Internal Audit and IT Audit) (1st ed.). Auerbach Publications.

How and Why Workplace Ethics are Important. (n.d.). Software Techniques. Retrieved November 24, 2021, from https://softwaretech.com/how-and-why-workplace-ethics-are-important/

- MENDOZA, RHEA LYN B. (2019-101819)
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Christian CasalNovember 26, 2021 at 12:01 AM
The most important of the seven E's, in my opinion, is ethics, which has the greatest impact on an organization. When it comes to how the entire company operates on a day-to-day basis, the management team sets the tone. Because ethical practices and behavior are at the heart of the prevailing management philosophy, leaders in an organization can guide employees by setting a good example and guiding them to make decision that is best to them as individuals and to the company as a whole. Building a company on a foundation of ethical behavior has long-term benefits for the organization, including the ability to attract and retain highly talented employees, as well as the ability to establish and maintain a positive reputation in the community.

Employees are more likely to follow management's ethical lead when they are leading ethically. This enhances productivity and overall employee morale in the organization since people make better judgments in less time. Working with honesty and integrity benefits the entire company. In addition to performing better in their jobs, employees who work for a company that requires good business ethics in all parts of operations are more loyal.

Beyond employee loyalty and morale, corporate ethics is critical to a company's success. It is important to note that the potential to earn profits both short and long term is directly tied to a company's ethics.

Reference:

Murdock, Hernan. (2016). Operational auditing: Principles and techniques for a changing world. BocaRaton, FL: CRC Press.

CASAL, CHRISTIAN T.
2019-103830
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Christian CasalNovember 26, 2021 at 12:07 AM
Hi Mr. John Joseph Cedo!

I appreciate how you constructed your essay, it is very simple but meaningful. I also agree in your point that efficiency is the most significant among 7 E's of success. A very well explanation. Good job!

CASAL, CHRISTIAN T.
2019-103830
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Christian CasalNovember 26, 2021 at 12:18 AM
Hello Mr. Hans Theo!

I admire the way you structured your essay; it is deceptively simple yet profound. I concur with your assertion that efficiency is the most critical of the seven E's of success. A succinct explanation. Excellent work!

CASAL, CHRISTIAN T.
2019-103830
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Jennalyn BatjerNovember 26, 2021 at 12:30 AM
The 7E’s of success are Effectiveness, Efficiency, Economy, Excellence, Ethics, Equity, and Ecology. Among those 7 E’s that we discussed, the best E that has the greatest impact to an organization is the Effectiveness. According to Murdock (2017), the process of evaluating the degree to which an organization, program, or process is achieving its goals and objectives is known as effectiveness. The comparison between planned and actual outputs is used to determine effectiveness. We all know that every organization should have a mission and vision, as well as goals and objectives. The mission should be defined and communicated to all personnel, giving them a feeling of purpose, inspiring them, and igniting their desire to achieve it. The mission is also long-term, ensuring that the organization's goals are met. Goals and objectives serve as visible signs of achievement and aid in the development of tactical actions to achieve them. The purpose of it is to guide the organization in the right direction. Imagine if an organization did not have mission and vision, that organization will be like a ship without a rudder that wanders in circles or it's like being a tramp who has nowhere to go. Effectiveness is the best E because if the organization has a clear mission and vision, those remaining E’s will be achieved.

Murdock, H. (2017). Operational Auditing: Principles and Techniques for a Changing World. CRC Press Taylor & Francis Group. pp. 86

-BATJER, JENNALYN P. (2019-101439)
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Beverly Jane B. LuibNovember 26, 2021 at 1:22 AM
Operational auditing is mainly concerned with discovering possibilities to increase an organization's progressive and successful performance. Every company, as we all know, have purposes, visions, targets, and objectives that steer them toward success. With that, in my perspective, the best “E” that has the greatest impact to an organization is Effectiveness.

Effectiveness is concerned with achieving predetermined objectives (specifically planned achievements) and having the actual impact (output achieved) compared with the intended impact (objective). (Admin, Auditing and the three Es - Public Accountants 2021) That relates to a firm's ability to execute its mission. It demonstrates how an organization is progressing toward achieving its purpose, vision, goals, and objectives that they aim to fulfill. Effectiveness consists of comparing the planned outputs with the actual outputs. Internal auditors can make a substantial contribution for improvement in company operations by closely examining or even questioning the appropriateness, usefulness, and relevance of policies and procedures, which have a tendency to become outdated. Merely following existing policies and procedures is not enough. These must be appropriate and enable the achievement of objectives. If there is a discrepancy in this regard, internal auditors should question them. (Murdock, 2017 p. 86).

From the word itself “effect” defined by Google Dictionary “a change which is a result or consequence of an action or other cause.” Showing that it means an organization’s effectivity can be measured by how well they strategize their plans on solving problems and improving the procedures being done to achieve the objectives. Thus, we see a successful outcome which can be seen in an organization’s net profitability.

References:
A. (2015, June 30). Auditing And the Three Es - Public Accountants. Auditing and the three Es - Public Accountants. https://www.publicaccountant.com.au/features/auditing-and-the-three-es.

Murdock, H. (2017). Operational Auditing: Principles and Techniques for a Changing World. Taylor & Francis Group, LLC. pp 86.

Effect - Google Search. (n.d.). effect - Google Search. https://www.google.com/search?q=effect&ei=05egYaDPFdfV1sQPmoOS-A8&ved=0ahUKEwjghLOly7X0AhXXqpUCHZqBBP8Q4dUDCA4&uact=5&oq=effect&gs_lcp=Cgdnd3Mtd2l6EAMyBwgAELEDEEMyBAgAEEMyBAgAEEMyCAgAEIAEELEDMgoIABCxAxCDARBDMggIABCABBCxAzIHCAAQsQMQQzIHCAAQsQMQQzIHCAAQsQMQQzIECAAQQzoHCAAQRxCwAzoHCAAQsAMQQzoLCAAQgAQQsQMQgwE6BQgAEIAEOgsIABCxAxCDARCRAjoICAAQsQMQgwE6BAguEENKBAhBGABQ2wtYzRtghB5oAnACeASAAZoBiAHMCpIBAzYuN5gBAKABAbABAMgBCcABAQ&sclient=gws-wiz.

LUIB, BEVERLY JANE B.
2019-105706
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AnonymousNovember 26, 2021 at 1:23 AM
The 7 Es are designed to assist the auditors contribute value in order for the organization to succeed. In my opinion, Effectiveness has the most impact on the organization out of the seven Es outlined. The organization’s mission, vision, and goals plays an integral part of the company for strategic direction. Every department has set its goals, but how can we say that these departments are achieving their goals effectively? According to Murdock (2017), Effectiveness is the process of evaluating how well an organization, program, or procedure is meeting its goals and objectives. The comparison of planned and actual outputs determines its effectiveness. It has to do with the rate at which they achieve those goals and the ability to fulfill the specified objectives, however some goals are poorly constructed, unrealistic, and are not properly communicated with the employees that results in failure to meet operational objectives. Internal auditors can make a significant contribution to a company's operations improvement by closely evaluating, scrutinizing the appropriateness, applicability, and relevance of policies and procedures. Effectiveness of the operations relies on how successfully an organization can accomplish the outcomes it seeks to yield. It revolves around ensuring that all of the organization's foremost operations add value to the end client.

Reference

Murdock, H. (2017). Operational Auditing: Principles and Techniques for a Changing World. CRC Press Taylor and Francis Group.

Pablo, Ma. Rowena
2019-106997
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Salapare, DaryllNovember 26, 2021 at 1:39 AM
Efficiency, out of the seven Es in operational audit, has the largest influence on a business in my opinion. A systematic evaluation of management's attempts to achieve goals efficiently and effectively in order to verify conformity to management rules and stated requirements is known as an efficiency audit. The purpose of an efficiency audit is to identify potential danger spots, highlight prospective possibilities, minimize waste or wasteful loss, or watch executive performance and evaluate executive control efficacy.

A 'Performance and Efficiency Audit' is a diagnostic evaluation procedure for assessing objectives, plans, policies, and actions in every step of operation to reveal hidden flaws and provide improvement suggestions in areas that have evaded management's notice. The efficiency audit's main goal is to find flaws or abnormalities in any of the parts inspected. Its mission is to assist management in achieving the most efficient and effective operations management possible. The purpose is to research and assess strategies and performance in all sectors.

Efficiency Audit does it to make a judgement regarding the efficiency of existing practices. It shall, however include an enquiry into, whether, in carrying out its responsibilities, the audited entity is giving due consideration to conserving its resources and using the minimum effort to do its work.

Refence:
GeekTonight (2021). What is Efficiency Audit? Objectives, Purpose, Scope, Report. Retrieved on November 26, 2021 from https://www.geektonight.com/efficiency-audit/

SALAPARE, DARYLL A.
2019-102486
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Salapare, DaryllNovember 26, 2021 at 1:47 AM
Good day, Joseph! Reading your work broadened my understanding of efficiency. We both have the same choice for which of the seven Es has the biggest impact on a firm. It also allowed me to emphasize my statement that a company's efficiency has the greatest impact.

SALAPARE, DARYLL A.
2019-102486
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Salapare, DaryllNovember 26, 2021 at 1:51 AM
Hello Hans! We have the same choice when it comes to what has the greatest impact on an organization: efficiency. I'd want to commend you on your effort because you approached it from a different perspective. It also allowed me to emphasize my statement that a company's efficiency has the greatest impact.

SALAPARE, DARYLL A.
2019-102486
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Thea Sofia A. BarabichoNovember 26, 2021 at 2:00 AM
Among all the E's discussed, select the best "E" that has the greatest impact to an organization?

Attaining success is always the end point of every organization. All of the management’s efforts and sacrifices are directed to one objective which is their primary purpose. In order to obtain success and keep the essential concepts in mind, Henry Murdock created seven E’s which will serve as a guide at times when things are not working out as they should.

Among the seven E’s mentioned, I think that excellence has the greatest impact on an organization. Excellence is not limited to performing or creating something, it ensures that tasks are made with quality. Growing up, I was taught that working on something poorly is like not working on it at all. Doing jobs and tasks with quality can be the greatest help to determine an organization’s success. Satisfied customers yield high returns which in turn makes an organization more successful.

Oftentimes, businesses have embarked on an impression that focusing on quantity is what makes a company successful. However, looking at it in a wider perspective, it is quality which brings continued success and excellence. As John Ruskin mentioned, “Quality is never an accident. It is always the result of an intelligent effort.” From this, it could be concluded that excellence is not achieved overnight - it is a continuous process which needs keen observance and relevant adjustments. It is significant that an organization measures quality to determine if goals are achieved, repeat what is rewarded, and stop doing what is punished (Murdock, 2017).

An organization is said to be excellent if their operational policies are rendered effectively, efficiently, and economically. Through this, it could be assumed that it is the most important and has the most impact because it could only be attained if the such prerequisites are achieved.

Barabicho, Thea Sofia A.
2019-106912

Murdock, H. (2017). Operational Auditing: Principles and Techniques for a Changing World. CRC Press Taylor and Francis Group.
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Mark Raven R. DizonNovember 26, 2021 at 3:13 AM
Ethics is based on well-founded standards of right and wrong that prescribe what humans ought to do, usually in terms of rights, obligations, benefits to society, fairness, or specific virtues. On a personal and professional level, basic ethical concepts can help us live a more fulfilled life. Ethics is a set of rules that helps us distinguish between right and wrong, good and bad. Ethics can give real and practical guidance to our lives.
Ethics has the greatest impact to an organization because when a company is regarded to conduct ethically by its people, it can reap rewards and improve business performance. Employee performance, job satisfaction, organizational commitment, trust, and organizational citizenship behaviors can all benefit from a positive perception of ethical behavior. It's critical to recognize that ethical workplace behavior can encourage positive employee behaviors that lead to organizational success, just as unethical workplace behavior can result in bad headlines that lead to corporate failure. Simply put, organizational stakeholders, which include individuals, groups, and organizations of all kinds, form a connection with a corporate organization in order for the firm to safeguard their interests in a specified way. As a result, stakeholders and corporate organizations have a shared expectation that they will operate ethically and in each other's best interests. A decision by the organization or a stakeholder to act unethically can strain the relationship and harm the organization's reputation. The greater risk of reputational damage and impact from bad headlines is frequently the driving force behind businesses' efforts to promote and support ethical behavior, as well as to prevent and report unethical activity. Furthermore, in a world where many people are connected to social media via mobile technology, the risk of unethical behavior damaging an organization's reputation is arguably much higher than in previous decades, as behavior is more easily captured on video, photographed, shared online, and propelled into headlines. However, there are advantages to ethical behavior in the workplace that go beyond protecting one's reputation. Employee perceptions of an organization's ethical behavior can lead to favorable consequences and greater financial results. Employee performance, job satisfaction, organizational commitment, trust, and organizational citizenship behaviors can all benefit from a positive perception of ethical behavior. Altruism, conscientiousness, civic virtue, sportsmanship, and courtesy are instances of organizational citizenship behaviors.
Therefore, Ethics has the most impact on an organization because when employees perceive a company to be ethical, it can reap benefits and boost corporate performance. A positive perception of ethical behavior can boost employee performance, job satisfaction, organizational commitment, trust, and organizational citizenship behaviors. It's crucial to understand that ethical workplace behavior can inspire positive employee behaviors that contribute to organizational success, just as unethical workplace behavior can lead to negative headlines and company collapse.
References:
Mahan, Dr. T (2021, May 05). How to Define Ethical Behavior & Why It’s Important in the Workplace https://workinstitute.com/how-to-define-ethical-behavior-why-its-important-in-the-workplace-2/#:~:text=An%20organization%20that%20is%20perceived,trust%20and%20organizational%20citizenship%20behaviors.

DIZON, MARK RAVEN R.
- 2019-107007
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AnonymousNovember 26, 2021 at 3:16 AM
AMONG ALL THE Es DISCUSSED, SELECT THE BEST "E" THAT HAS THE GREATEST IMPACT TO AN ORGANIZATION?

In many organizations, in fact, in many countries, efficiency rates are abnormally low. This creates lower productivity, lower growth, and the waste of resources that if used more efficiently would result in higher rates of return (Murdock, 2016). I think it will be efficiency is the most important factor because it will increase the profit by maximizing the available assets of the company. It ensures that the assets are all generating or are helping in generating of revenue, but this has changed to ethics.
Based on the explanation of sir Marky, ethics refers to or considers the profit, people, and planet. This made me believe that this will have the greatest impact because the population of environmentally aware individuals is increasing every year. According to strategy-business.com, In their 2019 Global Consumer Insights Survey, just 35% of respondents said they chose sustainable products to help protect the environment, 37% said they looked for products with environmentally friendly packaging, and 41% said they avoided the use of plastic when they could. If you will still consider the profit-oriented or asset maximization concept, your business might lose customer interest and reduce sales. As long as the business is generating enough revenue for current and future expenses, the business can focus more on ethics.

Kato, B. (2021, August 31). What is cancel culture? everything to know about the toxic online trend. New York Post. Retrieved November 26, 2021, from https://nypost.com/article/what-is-cancel-culture-breaking-down-the-toxic-online-trend/.

Murdock, H. (2017). In Operational Auditing The Principles Techniques for a Changing World. (pp. 85–97). essay, CRC Press.

NIEL CAMORONGAN
2019-102455
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AnonymousNovember 26, 2021 at 4:18 AM
All of the seven E’s that were discussed have their own benefits to the organization and the auditors depend on how they can benefit from it. These seven E’s have different purposes and have distinct offers to the organization. Possession of all of these will ensure an organization’s stability and will maximize its objectives and goals whether it is in a short span or a long span of time. Among the seven e’s, if I were to pick which e is the most important or functional to the organization I would be torn between efficiency and effectiveness. I have difficulties choosing between these two since these two are very similar and offer great individuality to the institution. Since these two are part of the process of the firm, I will just focus on the outcome of the procedures and processes input just to come up with the results reported. Effectiveness has the greatest impact on an organization among the seven e’s. Effectiveness shows how the company dwells on the hazards and risks during the processes of the organization. This e will summarize how a company is doing all throughout. It will tell if the company succeeded in maintaining its objectives until the end. Effectiveness will state if the company has succeeded or rather surpassed even better with the plan they have proposed in the beginning. Effectiveness will report the progress of a firm.

In simple words, effectiveness is defined as the ability to achieve the desired outcome. In this approach, as long as a business manager does good planning that produces the desired results, the company will remain profitable. It is critical for a business manager to be able to make the appropriate decisions at the right moment.

References:
389. (n.d.). Efficiency, economy and effectiveness. Canadian Audit and Accountability Foundation. https://www.caaf-fcar.ca/en/efficiency-concepts-and-context/efficiency-economy-and-effectiveness

Colarina, Adrian Mark T.
2019-105709
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John Patrick Abraham A. BentulanNovember 26, 2021 at 4:35 AM
I have chosen efficiency as the one that would have the greatest impact to an organization. Since efficiency is a broad term, I see it as the main trait that an employee aims to be – being efficient clearly means that an individual is capable of doing its duties and responsibilities exceptionally with the consideration that he/she had done such with the least number of resources used. Personally speaking, if I were to judge that someone is efficient in his/her own work, I would immediately assess the very outcome as it would be the ultimate basis of the job done. I would call a person efficient if he/she was able to achieve the other six Es – he/she must be competent in his/her soft and hard skills as these two are the main ingredients of a person who is capable or more than capable to the duties and responsibilities that he/she carries out.

An effective person shall display behaviors that would immediately be an indicator that he/she is a role model. It means that the things he/she do to achieve something is working; however, it doesn’t necessarily mean that an effective person does not need to improve. For me, an effective person shall always have the urge to unlock his/her own potential; in doing so, he/she shall improve over time and would contribute better outputs in the future for the organization. Lastly, it is important to compare and contrast efficiency and effectiveness in an organization. These two traits are somewhat very similar to one another; however, there is a gray line in which the two may be distinguished. An efficient person is sure likely to be an effective person; while, an effective person may not be an efficient person.

BENTULAN, JOHN PATRICK ABRAHAM A. (CBET-01-502A)
2019-106909
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Drice, Arielle Jean G.November 26, 2021 at 4:49 AM
There are seven E’s which enable the company and auditors in organizing and evaluating their operational policies. Among all the E’s that was discussed, I believe that effectiveness was way more influential in a company though every E’s has their importance and impact in the organization.
Managers must understand what they are managing, why this is essential, and how to organize it. This is where effectiveness and efficiency come into play. In order to execute the organizations properly, they should know the difference between effectiveness and efficiency. Managers must understand what they are managing, why this is essential, and how to organize it. This is where effectiveness and efficiency come into play. Organizational effectiveness is critical in determining whether a company will be beneficial in the long run. The greater a company's ability to achieve its objectives, greater financially beneficial it becomes. This level of success can assist organizations in reducing waste areas, such as outdated technology or inefficient workflows, resulting in cost savings for their business. Other advantages of organizational effectiveness include:
• Creating effective change techniques
• Identifying and mitigating risks
• Improving Employee Engagement and Productivity
• Improving the customer experience and value
• Developing a more effective management system
• Enabling organizations to meet stakeholders' needs
References:

Gager, A. (2018, June 26). Efficiency and effectiveness: Know the difference. Facilitiesnet. Retrieved November 26, 2021, from https://www.facilitiesnet.com/maintenanceoperations/article/Efficiency-and-Effectiveness-Know-the-Difference--17835

Indeed Editorial Team. (2021, July 27). What is organizational effectiveness? (With steps and tips). Indeed Career Guide. Retrieved November 26, 2021, from https://www.indeed.com/career-advice/career-development/organizational-effectiveness

Drice, Arielle Jean G. (2019-105710)
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John Paul SavillaNovember 26, 2021 at 5:01 AM
1. In relation to the impact of the 7E's to the organization, I personally picked the ecology or environment as the best and had the greatest impact among other E's. Even though all of them have a great impact to an organization, environment stand-out among others. Environment has the greatest impact because it is the primary source of resources of most, if not all, organizations. Not only it is a source of resources of organization, it is also a source of threats or hazards if not taken into account properly. As one of the primary goal of every organization nowadays are sustainable and development, environment plays a big role in sustaining a organization's operations and objectives. Thus, environment gives a lot of value to organizations. The goal of every country now is to prevent, mitigate and adapt to climate change and one way of achieving that is through passing different kinds of bills or laws. Organization as a part of the country will also comply with it. Organizations nowadays are driven by a green finance movement whereas organizations, with the objective of helping to prevent and mitigate climate change, tends to have more support not only from the financial institutions and governments but also from different kinds of environmental organizations and individuals. Simply stating, an organization with the objective of preserving environment have more customers, internally and externally. Environment also plays a big role in achieving the organization's excellence and economy by reducing their cost and providing more input like capital and resources. And by that, environment among the other E has the greatest impact to the organization.

John Paul Savilla, 2019-101412
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MARY ANN JINTALAN CEBUANONovember 26, 2021 at 5:09 AM
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John Paul SavillaNovember 26, 2021 at 5:09 AM
Hello Mr. Capinlac, I agree to your point that the ethics programs become an important tool for keeping the company achieve its long-term goals. It explains the scenario of how the known long-live companies kept their records good until the present time.
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MARY ANN JINTALAN CEBUANONovember 26, 2021 at 5:12 AM
Effectiveness, in my opinion, is the best "E" that has a significant impact on a company. The process of evaluating the degree to which an organization, program, or process is accomplishing its goals and objectives is known as effectiveness (Murdock, 2016 p.86). Effectiveness is concerned with a company's aims and objectives, which are the core substance of a business. Goals and objectives are critical in businesses because they define the company's destination and the reason for its existence. In addition, the purpose of operational audit is to accomplish goals. With the aid of effectiveness, a firm will be able to see if they are on track to meet their goals and objectives. As what Murdock stated, effectiveness consists of comparing the planned outputs with the actual outputs. As a result, a company's operations may be evaluated effectively by looking at what has been done and what has to be done in order to achieve fully realized goals and objectives. Through being effective, the internal auditor may make a substantial contribution to the company's operation by thoroughly analyzing the company's policies and procedures, determining if they need to be re-evaluated or replaced with rules that are more suited for the company's operations.

REFERENCE:
Murdock, Hernan. (2016). Operational auditing: Principles and techniques for a changing world. Boca
Raton, FL: CRC Press.

Mary Ann Cebuano (2019-106907)
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Ela Rain TalabongNovember 26, 2021 at 5:49 AM
(1/2)

AMONG ALL THE E’S DISCUSSED, SELECT THE BEST “E” THAT HAS THE GREATEST IMPACT ON AN ORGANIZATION.

Internal auditors assess their client’s organization’s conditions so that they can provide improvements to their operational practices and different processes. Operational audits often incorporate into their scope of work the 7 Es that play a key role in the success or failure of organizations (Murdock, 2016). The 7 Es namely effectiveness, efficiency, economy, excellence, ethics, equity, and ecology are the key aspects that add value to the work of the internal auditor.

Among the 7 Es that are presented, the best “E”, for me, that has the greatest impact on an organization is Ethics since if the core humanity of the organization is rotten, everything in the organization will soon follow. As Murdock (2016) noted, “Ethics is the study of moral values and principles of conduct governing an individual or a group.” Once an organization observes proper ethics before, during, and after all of its processes, the integrity of the works is guaranteed, ensuring the honesty and completeness of everything important in the organization. This way the plans made are at their best as the work ethics ensures that employees uphold the quality of ideas and information involved in devising plans to ensure the effectiveness and efficiency of these plans when implemented. Also, ethics upholds excellence within the organization as honesty in work results in quality products and services. Moreover, it adds up to make sure that the management of the resources of the organization is properly managed and mitigated by the organization’s benefits while maintaining the value of their products and services. Ethics will also safeguard the treatment of the employees and every person within the organization as it supports every right of humans and follows what is morally right. Furthermore, ethics advocates for the proper conservation of the ecology as it is morally right to protect and preserve the mother earth that is our home as well as the ecosystem of the world.

Talabong, Ela Rain
2019-102788
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Rina P. BucalNovember 26, 2021 at 6:10 AM
Effectiveness, efficiency, economy, excellence, ethics, equity, and ecology are the 7 Es that are often incorporated into the success of a business. Success is equated with 7 Es, as these are designed to add value to the organization. These are all interrelated, but if I were to select the best that has the greatest impact on the organization, it would be excellence. Excellence is performing all work with high quality, and this covers the other Es, such as effectiveness, efficiency, and economy. Excellence is not limited to having the best quality there is, but it must be attained effectively, efficiently, and economically. According to Murdock (2017), quality is essential to the continued success of the organization. Consequently, organizations must always strive for quality not just in their day-to-day operation but also in how they deal with their customers and how they facilitate production. Also, with excellence and quality, organizations go beyond what is average and ordinary as it enhances innovation, customer satisfaction, and organizational growth and improves efficiency and effectiveness. Once the organization demonstrates excellence, all other aspects of 7 Es will be achieved and the success of the business will be assured not just for a while but in the long run.

Murdock, H. (2017). Operational Auditing: The Principles Techniques for a Changing World. CRC Press.

BUCAL, RINA P. (2019-102462)
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Tapia, Gian Tricia B.November 26, 2021 at 6:33 AM
Internal auditors can use the 7Es (effectiveness, efficiency, equity, ecology, ethics, excellence, and economy) framework to help them find ways to contribute value to the organization (Murdock, 2016 p. 95). When it comes to annual performance reports, the internal audit department can define targets by including the 7Es, and determine if there are any instances that could contribute to the organization's improvement. We cannot deny the fact that each of them has a great contribution to the betterment of an organization. Among the 7 E’s, there are still one framework that truly helps an organization to reach the success they are aiming. In my opinion, the best “E” that has the greatest impact to an organization is the ethics. Ethics is usually based on standards of right or wrong that dictate what people should do in terms of rights, obligations, benefits to society, impartiality, or certain virtues. Ethics determine behavior. Without ethics, everything a person does is arbitrary and purposeless. Ethics has a very high priority in our profession. It is a study of morally appropriate behavior and decisions, investigating what to do. Ethics helps shape human behavior. Accountants handle detailed financial information about individuals and organizations. The Code of Ethics is the basic principle that accountants adhere to improve their profession, maintain public trust, and show honesty and fairness. Individuals who join the organization, qualify and open to the public as certified accountants do their best to protect the reputation of the profession. Ethical audits confirm that the conduct in which the organization engages in its Code of Conduct and its policies and procedures actually exists and that prohibited acts are not described in these documents. If a professional is already carrying on the ethics he knows and has been taught to him, they might contribute a lot to the organization with credibility and integrity. Ethics is one of the most important in 7 E's.
D, A. (2020, October 24). Ethics: Definition, Principles, Importance, Ethical Issues, Ethical Dilemma, Code of Ethics. Your Article Library. Retrieved November 26, 2021, from https://www.yourarticlelibrary.com/business/ethics/ethics/99812Krell, E. (2018, April 10). How to
Conduct an Ethics Audit. SHRM. Retrieved November 26, 2021, from https://www.shrm.org/hr-today/news/hr-magazine/pages/0410agenda_social.aspx
Murdock, Hernan. (2016). Operational auditing: Principles and techniques for a changing world. BocaRaton, FL: CRC Press.
-TAPIA, GIAN TRICIA B. (2019-103668)
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MARINEL NUDONovember 26, 2021 at 6:39 AM
Success is the ultimate goal of every organization. Typical business success is measured by growth of the company; the money it provides and the ability of it to keep going for years. If you would ask every organization if they want their business or company to be successful they will all say yes. But how can organization be successful in their chosen path? How can they reach the goal they want?
Every organization wants to run a successful business, there are seven Es that can help the organization and these are Effectiveness, Efficiency, Economy, Excellence, Ethics, Equity, Ecology. And if I would choose one from those seven Es, I will choose effectiveness because the more effective an organization, the more likely it will survive and flourish over the long term. It’s worth noting that organizational effectiveness cannot be achieved, as one Bain & Company study put it, by “a cycle of recurring initiatives” to make your company more efficient. The behavior must be learned and baked into the day-to-day functioning and ongoing evaluation of the business (Devon Maloney (2019)).
In conclusion, being effective is part of every success of an organization. It gives positive impact to the company, so if the organization is effective the rest of the seven Es will follow.

References:
Fraser Sherman (2020). What Defines a Sucessful Business? Accessed November 26, 2021. https://smallbusiness.chron.com/defines-successful-business-19029.html

Grabillo, M. A. (2021). Operations Audit: Discussion Assignment week 5. Accessed on November 26, 2021. https://markgrabillo.blogspot.com/2021/11/operations-audit-written-assignment.html

Devon Maloney (2019). Organizational effectiveness: The X factor for company success. Accessed on November 26, 2021. https://slack.com/blog/transformation/organizational-effectiveness-company-success

- NUDO, MARINEL S. (2019-106335)
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Demabildo, John Michael F.November 26, 2021 at 6:51 AM
Of all the “E”s offered in the 7Es model, I believe that, by far, excellence offers the biggest impact on an organization. Some may argue that effectiveness or efficiency must be the top priority, but I believe that these two are so linked as to each other to the extent that when only one is present, it is as if there is a missing piece in delivering the full potential of a certain process or procedure. As Peter Drucker (2002) highlighted in his book, “efficiency is doing things right; effectiveness is doing the right things”. To put it simply, efficiency emphasizes time while effectiveness prioritizes objective. As a result, a process or procedure would be considered “productive” when both of these terms are incorporated. This simply implies that when utilized alone, they can provide a significant impact, but when coupled together, they undoubtedly offer the substantial impact on the organization.

The reasons stated above have convinced me that, individually, excellence has the greatest impact on any entity. Excellence, as defined by the American Society for Quality (n.d.), is the “achievement by an organization of consistent superior performance—for example, outputs that exceed meeting objectives, needs, or expectations.” This means that efficiency is the ongoing efforts of a company in both the establishment and fulfillment of their core values. It is important to note that efficiency is associated to what we refer as “quality”.

Quality, in any line of work, is a critical factor to consider because most value of the company in the perspective of its consumers (or even its potential consumers) can be derived from how well the organization executes their work performances. To put it another way, if a company wants to develop trust and loyalty among its customers, it must strive for complete excellence. This not only sets the firm apart from its competitors, but it also draws them closer together in terms of what they believe as a company in the pursuit of their mission, vision, and objectives.

References:

American Society for Quality. (n.d.). What is Organizational Excellence. Accessed November 25, 2021 from https://asq.org/quality-resources/organizational-excellence

Drucker, P. F. (2002). The Effective Executive. New York: HarperBusiness Essentials.

Written by:
DEMABILDO, JOHN MICHAEL F., 2019-101694
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Mary Angelou AronceNovember 26, 2021 at 7:44 AM
In achieving the well-planned internal control framework, the internal auditor should oversee the seven e's in the organization to add to the company's value. These are effectiveness, efficiency, economy, excellence, ethics, equity, and ecology.

The seven e's are highly important, but if I were to choose the best among them; I instead determine the "effectiveness." The organization's effectiveness will decide if the mission, vision, goals, and objectives have been achieved. The mission and vision will be served as a guide to the organization to a clear destination. It gives the management a strategic direction. And it also assists the employee in understanding the organization's purpose and the core values by which it is governed. It is an essential component of a company's strategy because it helps to set priorities, allocate resources, and ensure that everyone is working toward common goals and objectives, thereby providing a road map for the future.

Effectiveness incorporates the mission and vision, goal, and objectives of why the organization is appropriately functioning. It is the primary start-up why an individual or company wants to pursue business. And by identifying and being able to understand how values, mission, and vision interact with each other, an organization can develop a well-designed and effective strategic plan that will lead to a competitive advantage.

References:
Murdock, H. (2017). Operational Auditing: Principles and Techniques for a Changing World. CRC Press Taylor & Francis Group. pp 86

Grabillo, M. A. (2021, November 20). The Seven Es in Operational Audit (in Filipino). www.youtube.com. https://www.youtube.com/watch?v=BytHdZ2_5hk&t=7s

ARONCE, MARY ANGELOU N. 2019-105627
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Genelyn AloroyNovember 26, 2021 at 7:44 AM
All of the 7Es provides great impact to an organization as it is described as the key factors of success in an organization. However, in my perspective, the best “E” that has the greatest impact to an organization of the company is excellence. Excellence encompasses the others “E”s of success: effectiveness, efficiency, economy, ethics, equity and ecology. Excellence means executing everything with high quality as possible and does not only depend on meeting or exceeding the expectations of clients but also delivering what is promise and rendering work with high quality (Murdock, 2016). In relation to the implementation of an audit program, the quality of the work done or to be done by internal auditors is also critical. Internal audit typically aids a company in detecting and reducing risk. Internal auditors are sometimes asked to assist organizations in improving their capacity to offer high-quality products or services to their consumers. Internal audit, like its clients, has customers, thus internal auditors must fulfill them and give outstanding service. Internal auditors that perform well can add more value to the business and make better decisions for the benefit of its clients.

The effectiveness and efficiency of a company's operations are the outcome of excellence. It also encourages the completion of necessary tasks in the operation of an organization, such as financial reporting, in order to maintain efficiency. Excellence emphasized the importance of integrity as well. As a result, excellence understands the importance of compliance in code of ethics. The benefits of excellence also include equity and ecology; therefore, it recognizes the need of providing opportunities for everyone to engage and demonstrate their full potential; a fair working environment. Excellence also recognizes the need of environmental stewardship, which involves maintaining Natural Environment while conducting economic activities.

References:
Murdock, H. (2017). Operational Auditing Principles and Techniques for a Changing World. Taylor & Francis group. Pp.88

ALOROY, Genelyn T.
2019-202971
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Bernadeth DugayNovember 26, 2021 at 7:47 AM
For me, the most important aspect of an organization is its efficiency and effectiveness. These two are associated, which according to the father of the modern management, "Efficiency has been doing things in a better way; effectiveness is doing the right thing at all times." Those two above make the company's productivity more reliable and help it deliver on its promises. Towards an organizational unit, efficiency must function in good enough condition to use resources in such a way that those resources, such as hours and money, should not be frittered away, but instead actually assist the entity achieved the following goal, which would be to achieve maximum or acquire profit. Efficiency is related to management's guidelines for doing the right thing, in which the management must satisfy the entity's specific goals and perhaps even the prerequisites of customers’ satisfaction. Internal Auditors must, in broad sense, capture up with business preconceived notions and strike a healthy coordination of effectiveness and efficiency in order to achieve the organizational goals and objectives. Each and every attempt to increase Efficiency without the use of a corresponding increase in Effectiveness is highly probable to somehow be contradictory. To summarize, the management of an organization must strike a balance between effectiveness and efficiency.

REFERENCES:
Rosenfeld, Manny (n.d) Audit Efficiency and Effectiveness: A Matter of Focus; Retrieved from https://www.dallasiia.org/PDF/040512_pre.pdf

-DUGAY BERNADETH B. (2019-103892)

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UnknownNovember 26, 2021 at 8:48 AM
Hi Me-an!

I really appreciate your work! I am still in awe how you talk ethics as a driver of the employees performances. Though we have different views, I was able to look at the importance of ethics to strengthen good governance. Well said! 10/10

- AGULLO, JAMAICA MAE A.
(2019-105485)
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Darlene PalacioNovember 26, 2021 at 8:56 AM
The most important aspect of the 7Es that was discussed for me, and the one that I believe has the greatest impact on the organization's success, is excellence. Why? The term "excellence" refers to the high level of performance, products, and services provided. This is where the famous saying "quality over quantity" plays a great role. Producing high-quality products or reducing the cost of repeating a process just because it was done incorrectly and did not pass the quality check will save the company time and money. It also aids the company in determining the appropriate product pricing. Furthermore, I believe that the organization must enforce its strategies, skills, and efficiency in order to produce excellent results. Because of product differentiation and competition, customers demand excellence. When it comes to determining whether their purchase is worth the value they received, most customers prioritize product quality over price. Customer loyalty and promotion will increase as a result of quality assurance, which, in my opinion, opens the door to long-term success. When it comes to a company's performance, excellence is critical because it reflects the effectiveness of its strategies as well as how the company's mission and objectives are fulfilled. When employees perform well at work, it only means that the company's objectives have been met, and if they haven't, auditors can keep track of what's not working so that a solution can be devised.

Reference:
Murdock, H. (2017). Operational Auditing: The Principles and Techniques for a Changing World. CRC Press Taylor & Francis Group.

-PALACIO, DARLENE L.
2019-103509
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AnonymousNovember 26, 2021 at 9:44 AM
Internal auditing cannot be conducted without proper planning since it deals with the assessment of the whole operation and if it isn’t performed well, it will definitely affect the whole organization. As internal auditors assess and implement policies for the whole operation, they tend to be overwhelmed because of its complexities especially that changes occur every day which they should also consider, and this resulted to the necessity of a simple yet will target all important aspects of the operation. Then there is this 7 E’s model that will serve as a tool to assist the auditors in taking into account the organization’s structure and its operating practices thus, helping them to examine the short-term and long-term dynamics of the organization. “These 7 E’s highlight the responsibility that every organization should have toward its stakeholders, both internal and external.” (Murdock, 2017) The term economy as we all know is defined as the careful management of available resources which I think has the greatest impact on an organization out of 7 E’s because aside from being one of the original E’s, which I think it is considered as one of the major parts of this model, it also incorporates most of the other E’s wherein as the definition states, if an organization manages its available resources as thoroughly as possible, they will save resources and achieve the objectives of the operation that can be described as being efficient and effective, both that also form part of the original E’s. Economy’s essence also encompasses the achievement of the organization’s excellence. Thus, making it the most vital E of internal auditing. However, in order for the organization to achieve its objectives as detailed with the highest quality as possible, the internal auditor must take all the 7 E’s into consideration as for the fact that these are the tools or keys to the success of the organization.

References:

Murdock, H.
(2017). Operational auditing: principles and techniques for a changing world. https://e-rtu.edu.ph/pluginfile.php/286094/mod_resource/content/1/Operational%20Auditing%20The%20Principles%20%20Techniques%20for%20a%20Changing%20World.pdf

Chavez, Catherine H.
2019-101209
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AnonymousNovember 26, 2021 at 10:41 PM
All the seven E's are important in a organization. Each "E" is interdependent with one another and plays a vital functions that could achieve business objectives, goals and success. In this discussion, I would like to emphasize that "E" which for me could bring greatest impact to a organization and that is "Effectiveness".

Effectiveness is described in variety of ways. According to the Merriam Webster Dictionary, effectiveness is the extent or degree at which the business produces a desirable output. Additionally, it comprises of ideas that can be used to assess business operations (Grabillo,2021).

The effectiveness of an organization in its operations can be observed through the established goals, missions and visions serving as a pathway or key driver in order to achieve a desirable result. An organization not having goals, mission and vision that drives them to run operations effectively will likely to disappear.

Most business are concerned with outputs, sales, quality products and services, innovation and reduction of costs and this is where effectiveness lies within. Effectiveness helps to assess the progress towards mission fulfilment and goal achievement (Philips, 2011). Businesses who strive toward being effective in every operations for each department has the likely chance to survive and flourish over a long period of time (Maloney, 2019). More importantly, effectiveness helps businesses to grow (Smith, 2016). Business who does the right things will lewd them to the results that they want.

REFERENCES:

Merriam Webster Dictionary (1898). Effectiveness. Retrieved 27 November 01:30 pm from https://www.merriam-webster.com/dictionary/effective

Smith, Glenn (2016 March 22). Business Growth: Efficiency Vs Effectiveness. Retrieved 7 November 2021 02:04 pm from https://www.glennsmithcoaching.com/business-growth-efficiency-vs-effectiveness/

Maloney, Devon (2019, June 17). Organizational effectiveness: the X factor for company success. Retrieved 27 November 2021 02:06 pm from https://slack.com/blog/transformation/organizational-effectiveness-company-success

Grabillo, Mark Anthony (2021 November). The Seven E's in Operational Audit. Retrieved 24 November 05:00 pm from https://youtu.be/BytHdZ2_5hk

PIOLIN, RICKA MAE B
2019-101805
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Bianca Marie Q. AplacadorNovember 26, 2021 at 10:49 PM
Internal auditors should treat the 7 E's as an integral part of the themes they include in their audit plans and as part of the topics examined during their reviews (Murdock, 2017). However, in my opinion, efficiency would have the most impact on an organization. Given the scarcity of all inputs or other resources, it is critical to conserve them while maintaining the required level of production. Meaning, efficiency is the organization's ability to carry out its objectives with the least amount of resources. Furthermore, increasing efficiency allows an organization to save both time and money, resulting in an increase in profitability for the organization. The more output an organization produces with a certain number of inputs, the more efficient the organization is. Yet, being efficient does not entail compromising the quality of the output in order to be successful. Thus, efficiency is an important factor in the firm's organizational effectiveness.

There are two major factors that contribute to increased organizational efficiency and productivity. These two factors lie between the employees and the technology. In terms of employees, the organization should recruit individuals that meet the organization’s skill requirements in the present and future. Then, these individuals must be placed in roles where they can use their skills best and be given the freedom, flexibility, resources, and encouragement to put their skills to maximum use. On the other hand, an organization should invest in having modern machines, regardless of their type, with the capacity or capability to work effectively and should train employees on how to use these machines effectively. These factors would lead organizations both towards greater efficiency and success.

References:
CIO WiKi. (n.d). Organizational Efficiency. Retrieved from https://cio-wiki.org/wiki/Organizational_Efficiency

Murdock, H. (2017). Operational Auditing: Principles and Techniques for a Changing World. CRC Press Taylor and Francis Group.

- Bianca Marie Q. Aplacador (2019-106307)
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Khyla Bernadette DalmacionNovember 26, 2021 at 10:49 PM
The 7Es are effectiveness, efficiency, economy, excellence, ethics, equity, and ecology. The 7Es are intended to assist auditors in adding value to the company and demonstrating to clients that they genuinely want to contribute to its success. These seven factors are linked to one another.

Out of all these seven factors, effectiveness is the most important for me. The process of evaluating the degree to which an organization, program, or process is achieving its goals and objectives is known as effectiveness. The term "effectiveness" refers to the comparison of projected and actual outcomes. Effectiveness refers to attaining set goals and objectives while using the least amount of resources possible. Upon reading and learning about the 7Es in an organization, I have come to a realization that whatever it is that the company is doing, it should lead to the positive result. In a project, we have to set our goals and the outcomes should be in our favor, that is why being effective is really crucial to an organization.

All of the seven factors I have mentioned above plays an important role in an organization but 'effectiveness' really caught my attention. It made me think that I should be very careful on what I should do, not just in a group activities, but also in my personal endeavor. I feel like out of all these, we should be more focus on achieving our goals and objectives even when the resources are limited.

Dalmacion, Khyla Bernadette S.
2019-105708
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Rodolfo S. Almonte IVNovember 27, 2021 at 1:46 AM
All of the 7 E’s are considered significant and vital. Although each and every word associated with the 7 E’s is important, there is one word that weighs more than the others for me. Some might argue that effectiveness is the most important, some might argue that efficiency is the most important. But in my opinion, Ethics is the most important among the 7 E’s. Ethics is defined as a system of accepted beliefs that control behavior, especially such a system based on morals. It can also be defined as a set of moral principles: a theory or system of moral values. Murdock defined ethics as how we behave; decisions come from the behavior and behavior comes from the attitudes. Ethics has to do with what my feelings tell me is right or wrong so the reason why I chose ethics as the most important among the rest of the 7 E’s is that I think there is no sense of having effectiveness, efficiency, good Economy, great excellence, Equity, and Ecology without Ethics. One must know knowing what is right and doing what is right is the vital key in a company’s success. Behavior is all that matters in terms of challenges, how we face risk, what we do when something is wrong with the company.
References:
ACI Learning, Audit. (2021, August 4). The 8 Es of Operational Audit Excellence - ACI Learning’s Webinar Series 2021 [Video]. YouTube. https://www.youtube.com/watch?v=QLBmTq8DO4A&feature=youtu.be
Murdock, H. (2016). Operational Auditing: Principles and Techniques for a Changing World (Internal Audit and IT Audit) (1st ed.). Auerbach Publications.
Merriam-Webster. (n.d.). Ethic definition & meaning. Merriam-Webster. Retrieved November 27, 2021, from https://www.merriam-webster.com/dictionary/ethic.
Ethic. ETHIC | definition in the Cambridge English Dictionary. (n.d.). Retrieved November 27, 2021, from https://dictionary.cambridge.org/us/dictionary/english/ethic.
Almonte, Rodolfo IV S.
2019-101425
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AnonymousNovember 27, 2021 at 2:11 AM
Among all the E’s discussed, select the best “E” that has the greatest impact to an organization.

All of the 7 E's play a key role in the success or failure of an organization. However, among these elements, for me efficiency has the greatest impact on the organization. Efficiency is defined as the ability of an organization to carry out its plans with the least amount of resources possible. The objective is to keep risk to a minimum because the easier and less expensive it is for a company to achieve its objectives, the more profitable it becomes. According to Murdock, efficiency relates to the use of inputs and other resources toward the achievement of goals and objectives in some form of productive activity. Let's say for example, if one business is able to produce 10 units of its products by spending 150 pesos per unit, then it is considered as more efficient in production than a similar business that produces 10 units of the same product spending 200 pesos per unit. This entails developing smart business goals that make use of only the resources absolutely necessary for success. Thus, efficiency is an important factor in the firm's organizational effectiveness, as it is the ease and degree of success with which the organization can achieve its goals (Chron, 2021).

References:

Murdock, H. (2016). Operational Auditing: Principles and Techniques for a Changing World (Internal Audit and IT Audit) (1st ed.). Auerbach Publications.

Chron Contributor (June 02, 2021). What Is the Organizational-Efficiency Factor? Retrieved November 27, 2021 from https://smallbusiness.chron.com/organizationalefficiency-factor-37839.html

CHENCEL-ANNMAE F. ALMODIEL
2019-105222
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AnonymousNovember 27, 2021 at 2:47 AM
Hi, Helen! We have different answers. But I agree with your thought. Yes, ethics is necessary in an organization for it serves as a guidepost of employees in doing what is right and wrong. Thank you for sharing your work, I've learned a lot from it!

Rate: 10/10

CHENCEL-ANNMAE F. ALMODIEL
2019-105222
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UnknownNovember 27, 2021 at 5:57 AM
Among all the E’s discussed, select the best “E” that has the greatest impact to an organization.

All the components of the 7 Es (including effectiveness, efficiency, ethics, excellence, ecology, economy, and equality) are equally important, as it serves as a way to assess or evaluate the state of an organization. However, if I were to pick one that I think has the most significant impact on an organization, it would be effectiveness.
Every organization operates with a purpose, which directs how and what actions are relevant to use. It is what we describe as the organization's objective. The concept of effectiveness caters to and focuses on assessing the attainment of the organization's goals. Through this, organizations can identify their strength and weaknesses, especially in terms of strategy. If organizations can recognize their lacking, they can easily modify them by taking action, therefore, resulting in a more effective and better outcome. The concept of effectiveness is also interrelated to success, whether of the organization or an individual. How can someone be considered successful if he cannot attain or achieve what he is aiming or pursuing? Furthermore, the primary reason behind the establishment of every organization is the achievement of its objectives.
The effectiveness of the operation of the organization is crucial for them. It will help them sustain their business and survive all the hindrances driving toward the pursuance of their purpose. Failure to observe and prioritize the effectiveness will result in the collapse of the organization.

Reference
Murdock, H. (2016). Operational Auditing: Principles and Techniques for a Changing World (Internal Audit and IT Audit) (1st ed.). Auerbach Publications.

DIZON, JAKE C. (2019-106975)
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Lexter M. TandayuNovember 27, 2021 at 5:59 AM
Among all the Es, what is considered to be the best and has the greatest impact on the organization? Many of us might have a different perspective regarding this question. For me, I think ethics is the “E” that has the greatest impact on the organization. Generally, or in simple definition, ethics are a set of guidelines that determine what is good and bad. In a business or organization, ethics are a set of guidelines that determines how the organization including its employees conducts itself. The reason why ethics is because it helps the organization to keep its integrity thus allowing them to gain trust from different stakeholders such as investors and customers. Also, ethics connects with other Es, how can an organization achieve its goals and objectives if employees do not perform according to its policies and procedures? Effectiveness will not be achieved. How about management and employee or both employees do not get along? There is a tendency that this will affect the operation and resulting it being inefficient. The same is true with equity and ecology, in addition, ethics keep the workplace safe. In conclusion, without ethics in the organization, the other Es will also suffer. And as far as I know, many businesses or organizations failed due to ethical issues.

Tandayu, Lexter M. (2019-106755)
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UnknownNovember 27, 2021 at 6:29 AM

All of the E’s are critical and useful and some may argue that the other E is useful than the other and those E’s comprises of Effectiveness, Efficiency, Excellence, Economy, Ethics, Equity, and Ecology. All of those are definitely important and it can truly help an organization achieve its goals but if as per my perspective efficiency is the most important E among all others because as we all know we live in a world that scarcity is present and so it is vital for us to make the most out of it and conserve them while maintaining the required level, quality of output. Moreover, increasing efficiency enables an organization to save both time and money, resulting in increased profitability. The greater the output produced by an organization with a given number of inputs, the more efficient the organization is. The efficiency of an organization serves just like an indicator whether an organization is functioning properly. In addition, organizations can free up funds for new developments and ideas when they are more efficient, which promotes innovation. And it doesn’t entail that being efficient and using the resources properly should compromise the quality of the output. All of the following mentioned above is the reason why I choose efficiency as the best E among all the E’s discussed.

Reference:
Murdock, H. (2017). Operational Auditing Principles and Techniques for a Changing World. Taylor & Francis group.

RETONE, RENCE LOUIESE E. (2019-105248)

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Myra Dianne RilleraNovember 27, 2021 at 6:38 AM
To be successful not only in the organization, but also as an individual, particularly as an internal auditor, all seven Es must be present. Every organization's success is founded on a set of principles. The seven Es which are the effectiveness, efficiency, ethics, excellence, economy, equity, and ecology are important concepts, and each one has a significant impact on the organization's success. Among all of the Es discussed, excellence, in my opinion, has the greatest impact on a business.

For me, Excellence encompasses all of the remaining Es. Excellence is defined as the process of achieving a high level of quality in one's work. Producing high-quality products and services will reflect the business's goals and objectives, and the effectiveness of the organization will be covered by the excellence of its people. Excellence is linked to ethics and ecology since it encompasses the integrity of presenting quality financial reporting as well as ensuring that there is ecological awareness to govern their quality performance. As for efficiency and economy, maximizing outputs while minimizing inputs or costs and determining the value of each item instead of its price is an indicator of providing a quality products and services. Finally, excellence and equity are linked because it permits people to treat others with dignity and respect, which lead to quality individual performance. Providing high-quality performance, goods, and services will earn the organization's clients' trust and ensure that it meets its overall aims and objectives.

REFERENCE:

Murdock, H. (2017). Operational Auditing Principles and Techniques for a Changing World. Taylor & Francis group.

RILLERA, MYRA DIANNE G. (2019-107121)
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Crishia Ellaine RamosNovember 27, 2021 at 6:38 AM
The 7 Es of success in an organization plays a vital role in its operational activities, more specifically in conducting audit. Considering this, it will greatly help to immediately discover the should be complied and non-compliance in an organization. 7 Es (effectiveness, efficiency, equity, ecology, ethics, excellence, and economy) is framework that assist internal auditors look for ways to add value to the organization (Murdock, 2016 p. 95). Moreover, among all the 7 Es mentioned above, I consider ethics as the best has the greatest impact to an organization. Ethics refers to the acceptable norms, practices and ethical values of an organization. In my opinion, it has the greatest impact it is for a reason that ethics deals with the 3P’s which are the profit, people and planet. When an organization possesses the 3P’s, they are exercising the good ethical values of an organization. According to B., an author in Lumen Learning, ethical principles and values serve as a guide to behavior on a personal level, within professions, and at the organizational level. Several approaches can be used by many organizations to maintain good ethical values. In line with this, of course, in business, we should not just only focus on profit but we should also consider other factors such as people and planet because they also contribute a lot of benefits to the organization. Considering the 3P’s equally could greatly help the organization to achieve its goals and objectives effectively.

References:
B. (n.d.). Ethics, an Overview | Boundless Management. https://courses.lumenlearning.com/boundless-management/chapter/ethics-an-overview/

Grabillo, M. A. (2021). The Seven Es in Operational Audit (in Filipino) [Video]. YouTube. https://www.youtube.com/watch?v=BytHdZ2_5hk&feature=youtu.be

Murdock, Hernan. (2016). Operational auditing: Principles and techniques for a changing world. Boca Raton, FL: CRC Press. Pp. 95.

RAMOS, CRISHIA ELLAINE P. (2019-105763)
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Dela Cruz, Joyce Ann N.November 27, 2021 at 6:42 AM
The 7 E's according to Murdock (2017) comprises effectiveness, efficiency, economy, excellence, ethics, equity and ecology which plays a vital role in helping the organization achieve its goals and objectives towards success. All of these E's are important and has its own contribution but there is one E which has the greatest impact to a business organization.
In my opinion, I believe that effectiveness has the biggest impact on organizqtion as auditors tend to give more focus on it in reality. Though this E must always go with efficiency. According to Peter Drucker, "efficiency is doing things right and effectiveness is doing the right things." Any attempt to improve efficiency of a business, without an equal emphasis and focus on its effectiveness, is likely to be counterproductive. As also stated in the book of Murdock (2017), effectiveness is a process wherein auditors are evaluating the procedures of the way the company is achieving their goals and objectives; comparative study and analysis between the desired expected outputs and the actual outputs. Effectiveness will result to a high quality of work and achieve the greatest and high potential outcome using different tactics the managers may use. To make the organization achieve effectiveness, it must formulate first a vision, mission, goals and objectives which they can use as a guideline in operating their business. These will serve as their tool to seek and know what is their purposes on operating their institution and how they will achieve success. Auditors reviewing the effectiveness of its operations may be improved by considering the outcomes and understanding how the quality of the outputs affects the said outcomes to the organization's success (Institute of Internal Auditors, 2018).

References:
Murdock, H. (2017). Operational Auditing: Principles and Techniques for a Changing World. CRC Press. pg. 85-86
Rosenfeld, M. (2021). Audit Efficiency and Effectiveness: A Matter of Focus. The Institute of Internal Auditors. Accessed Nov. 27, 2021. http://dallasiia.org/PDF/040512_pre.pdf

Dela Cruz, Joyce Ann N.
2019-105673
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Crishia Ellaine RamosNovember 27, 2021 at 6:51 AM
Hi Helen! Glad that we have the same answer. Your work helped me to understand more about our topic. I would like to commend you for making a precise and comprehensible work. Thank you for sharing your knowledge and ideas regarding our topic. Great job!

RATE: 10/10
RAMOS, CRISHIA ELLAINE P. (2019-105763)
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Myra Dianne RilleraNovember 27, 2021 at 6:55 AM
Hello, Bernard! I am impressed on how you present your work. It is well-written and very detailed. It is nice to know your insights about the 7Es. Good job!

Rate: 10/10

RILLERA, MYRA DIANNE G. (2019-107121)
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Lexter M. TandayuNovember 27, 2021 at 7:30 AM
Hi Helen! Your work is very informative and constructive. It helped me to strengthen my belief that Ethics is the best among the other Es. You elaborate it orderly, first by giving its advantages and then disadvantages after. Thankyou for sharing your ideas! Looking forward to read more of your work. 10/10

-Tandayu, Lexter M.
2019-106755
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Lovely BangateNovember 27, 2021 at 7:53 AM
Hi, Bernard! Your essay leaves me speechless. I like how you associated efficiency with all components of business success. It's indeed crucial that management focuses on managing and utilizing resources wisely for the sake of generating the greatest possible return an entity could have. Congrats! You've done an outstanding job.

-Bangate, Lovely V.
-2019-104176
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AnonymousNovember 27, 2021 at 9:23 AM
AMONG ALL THE Es DISCUSSED, SELECT THE BEST "E" THAT HAS THE GREATEST IMPACT TO AN ORGANIZATION?

As the given above, there are seven Es that can help the auditors and the organization to organize and assess their operational policies and these are effectiveness, efficiency, economy, excellence, ethics, equity, and, ecology. And in my opinion, effectiveness has the greatest impact on an organization. Effectiveness is the process of evaluating the degree to which the organization, program, or process is achieving its goals and objectives. Effectiveness consists of comparing the planned outputs with the actual outputs. Effectiveness is doing the right things to achieve the objective of the company. And also it will help them to make sure that they will reach their goals and objectives. Having organizational effectiveness can help the company to achieve its goal. It can also help the company to determine its long term success and improve its operation. It is important to have organizational effectiveness as it can develop productive strategies for change, address and mitigate risks, improve the employee performance and engagement, enhance customer experience and value, create a better management system, and allow organizations to meet the needs of stakeholders. Effectiveness can help the organization and auditors to come up with policies and strategies on how they can help the company's operation achieve its goal.

REFERENCES

Indeed Editorial Team (2021). What Is Organizational Effectiveness? (With Steps and Tips)
https://www.indeed.com/career-advice/career-development/organizational-effectiveness

Murdock, H. (2017). Operational Auditing: Principles and Techniques for a Changing World. CRC Press Taylor and Francis Group.

CASTOS, Channel
2019-101672

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UnknownNovember 27, 2021 at 11:34 AM
Internal auditing is critical to a company’s performance, and today’s organizations and internal auditors are primed to venture on the uncharted territory of unlimited potential in today’s competitive business environment. According to Surgent CPE (2020), the internal audit function is an extremely valuable activity that entities can utilize to attain assurance about a company’s accomplishment of its objectives. With that being said, internal audit’s capabilities have been advanced from day-to-day compliance and monitoring to a far broader role in the addition of value at all levels of the organization to accelerate growth and minimize unnecessary spending.

In this discourse, I’d like to thoroughly explain why I believe Excellence is the best “E” that could have a significant impact on the organization’s success. But before we get into why I chose Excellence, I’d like to discuss about my second best option, which is Ethics. I believe that a lack of ethics is a recurring problem in different business settings. The lack of proper documentation and records to substantiate the rationale for decisions and actions conducted results in a plethora of loopholes and deficiencies in operational policies. In fact, even when entities are technically compliant with the rules and policy framework, it is apparent that the lack of proper documentation of decision-making processes makes it difficult for entities to be assured that the activity was carried out with complete integrity and honesty, and without improper influence or consideration of inappropriate factors.

However, in a greater perspective, I believe that Excellence – defined as an organization’s achievement of consistent superior performance as defined by the American Society for Quality – is the best “E” that can surely have a significant impact on the organization. Auditing excellence guarantees that we uphold principles and ideals while also developing the flexibility and skill needed to meet future needs. It emphasizes rigorous standards to maintain independence and accountability at all levels of the organization, with focus on imposing integrity and respect. As a result, it improves the organization’s risk management, which is essential to perform our responsibilities to provide professional and independent audits. It ensures the quality of operational audit findings, which is crucial for the improvement of implementation of internal controls and policies that are vital to a company’s success. Finally, with excellence, we will be able to maintain a strong cohort of leaders who can effectively design internal controls and policies that adapt to current and emerging challenges.

References:
Internal audit operational excellence. (2021, May 13). McKonly & Asbury. Retrieved November 26, 2021, from https://www.macpas.com/the-ever-expanding-scope-of-internal-audit-moving-from-compliance-to-operational-excellence/
Excellence in internal auditing. (2020, August 10). Surgent. Retrieved November 26, 2021, from https://www.surgent.com/the-surge/podcast-episode-5-excellence-in-internal-auditing/
American Society for Quality. (n.d.). What is Organizational Excellence. Retrieved November 26, 2021 from https://asq.org/quality-resources/organizational-excellence

SABANGAN, REMELYN T. 2019-101964

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UnknownNovember 27, 2021 at 12:35 PM
In an organization it is important that they contained different components necessary to have an effective and efficient organizational structure. Various principles should effective management exists and should be assessed throughout the organization on a regular basis along with the decision-making and problem-solving processes that are necessary to have effective organizations. However, having an effective and efficient organization was not the end game to proclaimed that organization functioning successful and
its constantly meeting its goal and objective. This why in 7 E's I chose excellence as having a greatest impact to an organization. First and foremost, It’s not enough for organizations to be just good, technically speaking organization must performed at its best potential. So that'a why excellence is important in organization. In concept of excellence it improves the quality of effectiveness and efficiency of an organization not just in operational activity but also presented and financial statement. Excellence of company were reflected on financial statements wether they are performing great or wether they are falling low. Excellence facilitate effectiveness, efficiency and confident decision making that contributes an organization to have a higher performance. Organizational excellence can strengthen the overall prestige of an organization both internally and externally. overall, Excellence has the greatest impacts among the rest of 7 E's because an organization that achieves excellence performs deliberate work that simultaneously considers the needs of its customers, along with vision and values, employee engagement and competency, performance measurement, and managing the change that inevitably comes from this work and led the company to have a high performance that can be reflected to its financial statements.

References:
• AFI (2016) Organizational Excellence Retrieved from:
https://www.transformgov.org/articles/search-organizational-excellence 4:05am
• ASQ Organizaion (n.d) What is Excellence in Organization Retrieved From: https://asq.org/quality-resources/organizational-excellence 4:15am

Mallari, Eugene S.
2019-102848
CBET 01-503A
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Catherine BulingNovember 27, 2021 at 5:41 PM

Hi, Joseph! We both chose efficiency as the best E among the 7 E's. You explained why you chose it, and from this I learned more from you that efficiency really has a significant impact on the organization. I also agree with what you said in the last part that efficiency is the most important because it is designed to identify potential risk areas, highlight prospective opportunities, minimize waste or wasteful loss, or observe executive performance and evaluate the effectiveness of executive control.

Buling, Catherine
2019-103626
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Catherine BulingNovember 27, 2021 at 5:45 PM
This comment has been removed by the author.
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AnonymousNovember 27, 2021 at 5:47 PM
Hi, Joseph! We both chose efficiency as the best E among the 7 E's. You explained why you chose it, and from this I learned more from you that efficiency really has a significant impact on the organization. I also agree with what you said in the last part that efficiency is the most important
because it is designed to identify potential risk areas, highlight prospective opportunities, minimize waste or wasteful loss, or observe executive performance and evaluate the effectiveness of executive control.

Rate: 10/10
Buling, Catherine
2019-103626
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Joanna Elaine O. MacanipNovember 28, 2021 at 12:02 AM
All of the 7 Es play a key role in the success and failure of an organization. This framework is applied to examine how organizations operate in the ever-changing business world. Among the 7 Es, I think the E that has the greatest impact on the organization is Efficiency. Efficiency refers to performing tasks most efficiently and cost-effectively possible. This would guide firms in making the best use of all of their resources and workforce. In addition, management efficiency is essential because it could increase the profitability of its organization. Efficiency and effectiveness are linked; if a firm is profitable, then it will expand over time. This would help auditors to develop and execute good internal control, realize greater cost savings, improve the risk management, and quality of compliance in the organization.

Efficiency helps the company to save time and money, establish responsibility, create a positive work atmosphere, and increase communication. To increase organizational efficiency, they must improve employee abilities and place them in departments where they can best utilize their resources and perform their best skills. When a company gives its employees the best possible software systems that are simple to use, it may save them time and increase their willingness to work. Furthermore, the company should also invest in current technology, such as machines, to aid people in their tasks. Regularly assessing and reviewing all of the organization's procedures and systems is essential because this may lead to the creation of opportunities and discoveries for a prosperous business.

References:
Smith, G. (2016, March 22). Business Growth: Efficiency vs Effectiveness. https://www.glennsmithcoaching.com/business-growth-efficiency-vs-effectiveness/.

Wasp Barcode Technologies. (n.d.). 5 Important Factors of Efficiency in the Workforce. https://www.waspbarcode.com/buzz/5-important-factors.

Macanip, Joanna Elaine O.
2019-103856
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Catherine BulingNovember 28, 2021 at 12:17 AM
Hi, Bernard! We chose the same E that has the best impact on the organization, which is efficiency. I like that you explained also the different E's and how they relate to each other. Well done!

Rate: 10/10

Buling, Catherine
2019-103626
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Ivy Francesca CruzNovember 28, 2021 at 12:30 AM
Among all the Es discussed, for me, the best “E” that has the greatest impact to an organization would probably be ethics. Ethics are the principles that guide us to make a positive impact through our decisions and actions. Ethics play an important role not only in our personal lives but also in business. It is the practice that determines what is right, wrong, and appropriate in the workplace. Business ethics is often guided by laws, and keep companies and individuals from engaging in illegal activity such as insider trading, discrimination and bribery. However, other principles can influence how employees treat one another, corporate social responsibility and relationships with clients and vendors. The purpose of business ethics is to ensure a consistent moral attitude within the company, from executive-level management to new hires. It helps to ensure everyone is treated with respect, fairness and honesty.

Yes, all the Es are important, but ethics help the organization, as well as the auditors to organize and asses their operational policies because all the employees will work to a high standard of fairness, honesty and quality. They would be transparent in how well they’re doing and areas they may be able to improve. Owning up to their mistakes, and work to correct them as soon as possible. Keep their team and supervisors informed of mistakes and progress to ensure everyone is updated which is important to auditing.

Reference:
Indeed Editorial Team (April 2021). Business ethics definition and examples. Indeed Career Guide. https://www.indeed.com/career-advice/career-development/what-are-business-ethics0

- CRUZ, IVY FRANCESCA SN. (2019-103873)
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Ellen Grace TanhuecoNovember 28, 2021 at 12:32 AM
Most of the people might think that the most impactful "E" among the 7Es is either economy, efficiency, or effectiveness, which obviously were the first 3 Es considered as the initial framework for audits. But subjectively, it's ethics which actually has the most benefits to offer in an organization.

Ethics could cause a chain reaction. When an entity not just charters but at the same time constantly gives emphasis and value to their established code of ethics, their firm becomes a haven for harmonious relationships, ethical conducts, and morally responsible working environment.

Noticeably, the entity that is firm to upholding ethics clearly understands how to give importance on its employees. And in return, employees who know that they are well-taken care of become more committed in their work, exerting maximum effort in fulfilling their duties, hence, contributory to building excellence. This excellence further leads to having operational efficiency, which is one of the keys to achieving the entity's vision, mission, goals and objectives.

Furthermore, ethics is practically synonymous with equity, because it encourages fairness and respect among employees, as well as in all of the entity's commercial dealings. Its broad definition also encompasses environmental considerations. An ethical entity is by nature socially responsible, and so considers the environment (ecology) in its economic decisions and endeavors.

Overall, with ethics, short and long term goals tend to be more attainable. Corruptive and wrongful acts could be prevented by way of conscience (employee perspective) as ethics is a force that somehow strengthens it. And imagine how ethics can beautify a company's reputation, that would result to an increased confidence and trust from both internal and external stakeholders, thus, bringing more economic benefits into the company.

- Ellen Grace B. Tanhueco (2019-100741)
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Patrisha C. MarananNovember 28, 2021 at 12:48 AM
Every organization's success is dependent on a set of standards. The seven Es, which are effectiveness, efficiency, economy, excellence, ethics, equity, and ecology, are essential ideas that substantially impact the company's performance. When these Es are utilized in the form of themes, they may help the auditor offer significant value to the engagement and demonstrate to audit clients that auditors are engaged in assisting the organization's success. Among all of the Es addressed, I believe that effectiveness has the most influence and most significant impact on an organization.

The primary goal of operational auditing is to discover opportunities to enhance the effectiveness of an organization's operations. Every organization has a purpose, vision, goals, and objectives that steer it to success. Murdock (2017) defines effectiveness as the process of determining the extent to which an organization, program, or process is meeting its goals and objectives. As a result, the mission and vision developed by any organization that will steer them towards their aims and goals are an essential aspect of their effectiveness. Effectivity is expressed as to how well a company's net profitability compares to its desired profitability. To determine the effectiveness of an organization's strategic and operational plans, the firm should analyze if these plans and strategies are under the organization's objectives and aims.

In addition, effectiveness is critical for growth. It assesses how outputs interact with the broader economy and society—the employees' and supervisors' performance should be such that they provide the desired output level. They should perform effectively in the workplace to help provide high-quality results.

References:
Murdock, H. (2017). Operational Auditing: Principles and Techniques for a Changing World. pp. 86. CRC Press Taylor and Francis Group.
Siddiqui, F. B. (2018, August 13). Effectiveness and Efficiency - Why are They Important to a Business Entity? Accessed November 28, 2021, from https://www.linkedin.com/pulse/20140829162438-59817714-effectiveness-and-efficiency-why-are-they-important-to-a-business-entity

MARANAN, PATRISHA C., 2019-100624
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Micah LongnoNovember 28, 2021 at 12:51 AM
The first thing that came to my mind when asked what E has the most impact in the business organization, I would say it would be “effectiveness” because in effectiveness you get the outputs you expected by inputting correctly. In effectiveness the company can achieve their objective and goals. However, upon further analysis I came into a conclusion that the Ethics has the most impact in the business organization. A business can be effective by having a clear vision on what the company wants. A company can also be efficient by utilizing its resources appropriately. Yet, some companies are doing both of this unethically. I believe that every organization must be ethically responsible, whether in the company’s vicinity or outside their area. Ethics is what directs people’s behavior. According to (Twin, 2021) Business ethics is the study of appropriate business policies and practices regarding potentially controversial subjects including corporate governance, insider trading, bribery, discrimination, corporate social responsibility, and fiduciary responsibilities. In every aspect of business operation, a person must be equipped with ethics, whether in presentation of reports, your relationship with your co-workers, with your customers, and etc. If a specific business does not follow ethical behavior or does not practice code of ethics it directly affects the image of the company. It will have a negative impact on potential customers, investors and employees. Supporting that statement (Schroeder, 2019) mentioned that ethics is an essential skill, because business are focusing more on creating an ethical workplace by hiring right talents. Next is ethics drives employee’s behavior, they believe that a company that centers ethics motivate employee to perform their responsibilities with integrity. And lastly, ethics benefits the bottom line meaning it improves the profitability of a company. A well- implemented ethics program reduces losses from fraud and any unethical acts.

LONGNO, MICAH LEI C. ( 2019-106978)
References
Schroeder, K. (2019, May 9). University of Redlands . Retrieved from Google : https://www.redlands.edu/study/schools-and-centers/business/sbblog/2019/may-2019/3-reasons-why-business-ethics-important/
Twin, A. (2021, August 29). Investopedia. Retrieved from Google: https://www.investopedia.com/terms/b/business-ethics.asp

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Shiela Mae D. AlcantaraNovember 28, 2021 at 12:58 AM
Ethics has the greatest impact on an organization because it discusses what constitutes acceptable and unacceptable behavior and what constitutes moral justice or wrong. This has a significant impact on how a business interacts with its stakeholders. There has been considerable debate over the years about whether what is moral or ethical in one culture is the same in another, and what one person deems appropriate may be deemed inappropriate or immoral by another (IEP, n. d.). It encompasses a broad range of issues that a company must consider in order to maximize the organization's value. A lack of ethics is a major cause of inappropriate behavior and has serious consequences in policy making and organizational behavior (Murdock, 2017). Clearly, each business has encountered numerous changes in the environment and technology. This drives them to consider their actions in a variety of situations and the potential consequences of their choices on the corporation as a whole. Profit maximization, employee treatment, a safe work environment, compliance with rules and regulations, and which laws to consider when operating are all examples of critical decisions that must be thoroughly examined. While each of these decisions can be challenging, businesses can be guided by a variety of ethical principles. The most common are Teleological Approaches, which seek the greatest good for the greatest number of people, and Deontological Approaches, which refer to an individual's or group's duties or obligations and are synonymous with the phrase "Do unto others as you would have them do unto you." Moral standards vary significantly between groups of people and cultures. It is critical to emphasize that there are no superior cultures and that there are no international rights or wrongs. Organizations should uphold these ethical values and exhibit a commitment to fundamental human rights and the dignity of those affected. They must consider their surroundings and the sociocultural context in which they work. They must establish their own ethical standards and develop mechanisms to ensure compliance.

References:
Internet Encyclopedia of Philosophy. (n.d.). Moral Relativism. https://iep.utm.edu/moral-re/
Murdock, H. (2017). Operational Auditing: Principles and Techniques for a Changing World. Taylor & Francis Group, LLC.

ALCANTARA, SHIELA MAE D.
2019-103506
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