HOW TO MAKE A GOOD AUDIT IN A COMPANY, I HOPE YOU LIKE IT ....it's my grade job
We can define the administrative audit as partial or comprehensive examination of an organization in order to specify their level of performance and opportunities for improvement.
According to Williams P. Leonard audit management is defined as:
"A comprehensive and constructive review of the organizational structure of the company, institution, or Government Department; "or any other entity and its control methods, means of operation and employment of a its human and material resources".
While Fernandez sand J.A argues that it is objective, methodical and complete review of the satisfaction of the institutional objectives, based on the hierarchical levels of the company, as to whether structure, and to the individual participation of the members of the institution.
The distinctive characteristic of these different uses of the term, is that each audit is carried out according to the meaning of this audit to top management. Other definitions of administrative audit have been formulated in a context independent of direction superior to the benefit of third parties.
Classification of the audit.
Audit external applying the general concept, can say that the external audit is the review critical, systematic and detailed system of information of an economic unit, made by an auditor without labor ties with it, using techniques certain and in order to express an opinion independent on the form as it operates the system, internal control of the same and make suggestions for its improvement. The opinion or independent opinion has significance to third parties, as it gives full validity to the information generated by the system since it occurs under the public figure of the faith, which obliges them to have full credibility in the examined information.
An audit should make it a person or recognized independent firm of professional capacity. This person or firm must be able to offer a professional and impartial expert opinion regarding the results of audit, based on the fact that his opinion should accompany the report submitted at the end of the examination and granting that it can express one opinion based evidence and that no imposed restrictions to the auditor in his research work.
Internal audit internal audit is critical, systematic and detailed system of information of an economic unit, performed by a professional with the same labor ties, using certain techniques and in order to issue reports and make suggestions for the improvement of the same. These reports are internal and have no significance to third parties because they do not occur under the figure of the public faith. Internal audits are made by personnel of the company. An internal auditor is responsible the permanent evaluation of the control of transactions and operations and is concerned to suggest improving the methods and procedures of internal control that result in a more efficient and effective operation. Absolute impartiality and independence are not possible in the case of the internal auditor, since you can not divorce completely of the influence of the high administration, and although it maintain an independent attitude as it should be, this can be challenged in the eyes of third parties. For this reason we can say that the Auditor should not only be independent, but seem to get the confidence of the public.
Internal audit is a service that reports to the highest level of the leadership of the Organization and has features of Advisor control function, therefore neither can nor should have authority to line on any officer of the company, except for those who are part of the floor of the office of internal audit, should not in any way engage or commit to the company's systems operations, because its function is to evaluate and comment on them, so that senior management takes the necessary measures for its best performance. The internal audit is only involved in operations and decisions of his office, but never in the operations and decisions of the organization which provides its services, as stated it is an advisory function.
Differences between internal and external audit:
There are substantial differences between the internal audit and external audit, some of which can be detailed as well:
In the internal audit there is a link work between the auditor and the company, while in the external audit relationship is civil.
In internal auditing the diagnosis of the auditor, is intended for the company; in the case of the external audit opinion is usually intended for third parties is alien to the company.
The internal audit is disabled to give public faith, due to its labor contract bonding, while the external audit has the legal power to public faith.
The audit administrative needs
In the past two decades, there were huge progress in the technology of the information, in this decade seems to be very likely that there will be a great demand for information regarding the performance of the social agencies. the traditional (financial) audit has been historically concerned for compliance with the requirements of regulations and of custody, mostly has been dedicated to financial control. This service has been, and continues to be of great significance and value for our communities, industrial, commercial and services in order to maintain you confinas it in financial reports.
With the development of the technology of information systems has grown the need to review and assess the adequacy of management information, as well as its accuracy. Today, is increasing the need for officials, to have someone who is able to carry out the review and appraisal of:
· The quality, both individual and collective, of managers (functional administrative audit)
· The quality of the processes by which an organism (audit analytics) opera
What really is interesting to highlight, is that there is really a need to review and assess the internal and external factors of the company and this should be done systematically, covering the whole of it.
Objectives of the audit administrative
Among the priority objectives to implement consistently, we have the following:
Control-Intended to guide efforts in its implementation and to evaluate the organisational behaviour in relation to pre-established standards.
Productivity-directed actions to optimize the use of resources in accordance with the administrative dynamics, instituted by the organization.
Organization-determine its course to support the definition of the structure, jurisdiction, functions and processes through the effective management of delegation of authority and work in team.
Service-represent the way in which it is clear that the organization is immersed in a process that links it quantitatively and qualitatively with the expectations and satisfaction of its customers.
Quality. -They have that it tends to raise the levels of performance of the Organization in all its contents and settings, so that it produces goods and services highly competitive.
Change-transform it into an instrument that makes it more permeable and receptive to the organization.
Learning. -Allow that it becomes an institutional learning mechanism so that the organization can assimilate their experiences and capitalize on them to turn them into opportunities for improvement.
Decision-making. -Translate your implementation practice and results in a solid instrument of support to the process of management of the organization.
Principles of administrative audit
It is convenient to treat now as regards the basic principles in administrative audits, which are part of the theoretical structure, therefore must stress three basic principles, which are as follows:
Sense of the evaluation
The administrative audit does not attempt to assess the technical capacity of engineers, accountants, lawyers or other experts, in the execution of their jobs. Rather deals with carrying out a review and appraisal of both individual and collective, quality managers, i.e., persons responsible for the management of operational functions and see if they have taken relevant models that ensure the implementation of appropriate administrative controls, that you ensure: that the quality of the work is in accordance with established standards, plans and objectives are met and that resources are applied in economic form.
Importance of the verification process
The audit administrative responsibility is to determine what they know is actually doing in levels managerial, administrative, and operational; practice tells us that this is not always according to what they think the responsible of the area or the supervisor that it is happening. Administrative audit procedures support technically in direct observation verification, verification of land information, and analysis and confirmation of data, which are necessary and essential.
Ability to think in administrative terms
Administrative auditor, must be placed in the position of a manager who is responsible for an operational role and think about how this makes it (or should do). In itself, it is in administrative sense, which is a very important attribute for the administrative auditor.
Scope
In what refers to its area of influence, it includes its structure, levels, relationships and ways of acting. This connotation includes aspects such as:
· Legal nature
· Performance criteria
· Management style
· Administrative process
· Sector of activity
· Scope of operation
· Number of employees
· Relations of coordination
· Technological development
· Communication and information systems
· Level of performance
· I try to customers (internal and external)
· Environment
· Products and/or services
· Quality systems
Field of application
In terms of its field, the administrative audit can be implemented in any type of organization, whether public, private or social.
In the Public Sector is used depending on the legal figure, functions, scope of operation, level of authority and relationship of coordination, work and general lines of strategy system. Based on these criteria, the institutions of the sector are divided into:
1 unit of the Federal Executive (Secretary of State)
- State-owned entity
3 self-regulatory bodies - Governments of the States (federal entities)
5 interministerial committees - special mechanisms
In the private Sector used taking into account the legal figure, object, structure, elements of coordination and relationship of enterprises, on the basis of the following characteristics: - size of the company
2 sector of activity - nature of operations
As regards the size, conventionally it is classified them in:
1 micro
- small business
3 medium-sized company
4 large enterprise
It corresponds to the sector of activity refers to the specific branch of the company, which will be basically framed in:
1 telecommunications
2 transport
3 power
4 services
5 construction - petrochemical
7 tourism
8 cinematography
9 banking
10 insurance
11 maquiladora
12 electronics - automotive
14 editorial - graphic art
16 manufacturing
17 auto portfolio
18 textile - agricultural
20 fisheries
21 chemistry - forest
23 pharmaceutical
24 food and beverage
25 computing
26 steel
27 advertising
28 trade
As to the nature of its operations, the companies can be grouped into: - national
- International
3 mixed
Also taking into account the modalities:
1 export
- license agreement
- management contracts
4 societies in participation and strategic alliances
5-subsidiaries
In the Social Sector, applies considering two factors: - type of organization
2 nature of its function
For your type of organization are:
1 foundations
2 groups
3 associations
4 companies
5 funds
6 companies of solidarity
7 programs
8 projects
9 commissions
10 schools
By the nature of its function is located in the following areas:
1 education
2 culture
3 health and social security - policy
-Worker
-Farmer
-Popular
5 employment
6 power - human rights
8 support for marginalized and disabled
Conclusion
We can conclude, that the application of an administrative audit organizations can take different courses of action, depending on their organizational structure, object, twist, nature of their products and services, level of development and, in particular, with the level and form of delegation of authority.
The combination of these factors, taking into account the normative and operational aspects, the relations with the environment and the territorial location of the areas and established control mechanisms, are the basis for structuring a course of action capable of provoking and promote the personal and institutional change needed for a study of audit will translate into a strong innovative project.
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