AUDIT MANAGEMENT

AUDIT MANAGEMENT

Introduction and Overview

MANAGEMENT

It is the conduct of the management and covers the reasonableness of proposed policies and objectives, the means established for their implementation and control mechanisms to allow monitoring of results

MANAGEMENT SYSTEM

System to establish policy and objectives and to achieve those objectives.

A management system of an organization can include different management systems, such as a quality management system, financial management system or an environmental management system.

INTRODUCTION

In recent years, the concept of audit has been strengthened by ordered and systematic activities that focus on evaluating management companies to obtain a professional, independent and objective review of how resources are being managed as are developing processes, what is the degree of responsibility of management, whether goods or services are performed in compliance with quality standards and if the company has a model of appropriate indicators to your needs, allowing you to measure the effects and analyze the causes for disagreements occur, this being one of the essential objeticos having this evaluation technique.

DEFINITION OF MANAGEMENT AUDIT

The audit is the examination carried out by an entity external, independent professional, in order to evaluate the effectiveness of management in relation to the general objectives; efficiency as an organization and its performance and position from a competitive point of view, with the purpose of issuing a report on the overall situation and the same direction.

The audit management is the process of objectively obtaining and evaluating evidence and systematic way to present an independent evaluation of performance management processes based on objective criteria and assessments that provide a prospective focus on best practices to facilitate decision-making by those directing or initiating corrective actions, auditing management encompasses a variety of objectives in order to evaluate.

EFFICIENCY, achieving planned goals (specific indicators and supplementary indicators)

EFFICIENCY, clever use of resources (financial analysis, review of costs, profitability, productivity index)

QUALITY, the level of satisfaction achieved in processes, products or services.

IN SHORT

The management audit is a process that allows us to examine and evaluate the activities in an organization, program, project or operation sector. Activity based on a policy framework to determine the efficiency, effectiveness and efficiency in the use of available resources, process development and delivery of products or services, consistent with the needs of customers, the same which may be continuously improved through the implementation of the recommendations from the audit report.

COMMENT

All audit process is based on criteria or standards to measure the quality of work done in each of the phases are the same as a value chain, beginning with the preliminary diagnosis. With this preliminary information, planning is based specifies the audit to identify areas or relevant components, these being evaluated for internal control; as a result of this process, a working strategy tailored to the audited organization, ie, considering the areas requiring corrective detected weaknesses, known as findings or disagreements actions, is defined the same as communicated permanently to generate appropriate actions to improve the management, this model concludes with monitoring the implementation of recommendations and the verification of compliance

PROCEDURES PERFORMANCE AUDIT

The audit consists of review and evaluation of two major elements of the administration:

Policy of the corporation. Determining the existence, adequacy and understanding of politics and the meaning of his instructions as control elements into functional areas. Recovery from the effects of the absence of policies; or recommendations for the adoption or modification of instructional formalized.

Administrative Controls. Determination, and the adequacy of such as administrative or operational controls, and support for the objectives and productivity management; the degree of compliance in the areas of greater functionality; and coordination of operating controls with instructional policy of the corporation.

Evaluation of the effects of the action of administrative or operational controls in significant areas, and recommendations for the adoption or amendment of such controls.

OBJECTIVES OF THE AUDIT MANAGEMENT

Assess the degree of fulfillment of the mission, policies, objectives, goals, strategies, plans and programs through the application of performance indicators to measure the efficiency, effectiveness, and efficiency, as well as the impact this generated in the environment.

Find opportunities to eliminate inefficiencies that affect the cost of the product or service.

Identify the variables generated by the management, processes or activities that generate added value.

To determine the degree of reliability of internal control through risk assessment or internal and external factors which could impact risk to the achievement of goals and objectives.

Determine the adequacy of the organization of the institution.

Verify the existence of consistent and realistic goals and plans.

Ensuring the existence of adequate policies and enforcement thereof.

SCOPE OF AUDIT MANAGEMENT

The audit can be a specific function, department or group of departments, division or group of divisions or the entire company. Some audit covers a combination of two or more areas.

For example, in the study of the process of orders received by the sales department, the investigation may include in that department observed the various routines for processing or handling of paperwork and accounting department, procedure and staff qualities approving customer credit.

The field of study may include the economics of production, including elements such as specialization, simplification, standardization, diversification, expansion, contraction and integration; could also include the factors of production.

On the other hand as in the areas of consideration among others, could include a study and evaluation of forecasting methods: programming product cost engineering projects, estimating prices, communications, hardware and software for data processing, administrative efficiency, etc...

The elements in the management and operation methods that require constant monitoring, analysis, and evaluation are: plans and objectives, organizational structure, policies and practices, systems and procedures, control methods, operating methods, and material resources human.

APPROACHES TO AUDIT

In the audit, the concrete development of a work program depends on the particular circumstances of each entity. However, as indicated below the approaches that can be given to work within a general plan, in the main areas that make up an entity.

Audit of the overall management of the entity

Evaluation of the competitive position

Evaluation of the organizational structure

Evaluation of the process of strategic management

Evaluation of cadres

Audit management trading system

Analysis of business strategy

Offer of goods and services

physical distribution system

Pricing policies

Advertising Function

Sales Function

Sales Promotion

Management audit of the financial system

Working Capital

Investment

Long-term financing

Financial planning

International Area

Management audit of the production system

System Design

Production Scheduling

Quality control

Warehouse and inventory

Productivity, technical and economic

Design and product development

Audit of human resources

Productivity

Work environment

promotion policies and incentives

selection and training policies

Design tasks and jobs

Management audit of the administrative system

Analysis of projects and programs

Audit data processing function

Audit of administrative procedures

Forms of internal control in the functional areas

FUNCTIONS ASSIGNED

All these tasks can be summarized in the roles traditionally assigned to management: planning, organization, motivation, direction and control; irrespective of the multiple concretions each can reach. Ie it is able to measure and review critically both on the traditional aspects of management (technical, financial, marketing, and others.), As well as the structure and particular technologies of the studied system and the ability to leadership, taking goals, motivation and articulation towards the objectives of the organization are able to develop their managers.

In general terms it can be stated as follows:

Unit 02

Professional Standards Auditing

FRAMEWORK AUDIT MANAGEMENT

Organizations of all types may have the need to demonstrate their responsibility to the management system implemented and associated Audit practice management has become as a way to meet this need. The intent of these systems is to help an organization to establish and improve its policies, objectives, standards and other requirements

In conclusion, we can say that auditing standards are criteria or measures of quality of work performed and the person or persons running

What are the

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