Historical background of the administrative audit

INTRODUCTION

Administrative Auditing is within the field of Administration and forms a fundamental part as a means of control and change.

The Administrative Audit seeks to control and compare the current state of the company and how far it is from what it wants to be and what measures to adopt to achieve its goals or what pertinent changes must be made to access a better level of performance.

Later we will see the most relevant historical antecedents of the evolution of the administrative audit.

The background will be presented in a representative manner, which I hope will receive your approval.

HISTORICAL BACKGROUND

Historical events of greater relevance for the Administration, especially as precedents for the formation of a specialized branch dedicated to the control and periodic review of organizational performance:

In 1800, James Watt and Mathew Bolton developed a proposal to standardize and measure operating procedures; Charles Babbage in 1832, Daniel C. McCallum in 1856, and Henry Metcalfe in 1886, made valuable contributions to operational efficiency, the use of flow charts, and the Management study respectively; In 1933, Lyndal F. Urwick argues the importance of controls to estimate the productivity of the company; In 1935, James O. McKinsey proposes the evaluation of all aspects of a company, in light of his present and probable future; In 1945, The Institute of North American Internal Auditors mentions that the review of a company can be carried out analyzing its functions; In 1949, Billy E. Goetz declares that the administrative audit is in charge of discovering and correcting administration errors; In 1952,William S. Spriegel and Ernest Coulter contemplate a question-based application to capture information in a company; In 1953, George R. Terry mentions the need to evaluate an organization through an audit, using four procedures: Appreciation of Sets, Informal, by Comparison and Ideal; In 1955, Harold Koontz and Ciryl O'Donnell proposed self-audit; In 1962, William Leonard incorporated the fundamental concepts and programs for the execution of the administrative audit; In 1963, Stephen R. Michael addressed the issue of performance measurement and efficiency evaluation in a productive organization; In 1964, Dimitris N. Chorafas contemplates the need for companies to take into account that their elements tend to development as a consequence of their evolution and transformation,which forces them to have adequate control of their actions; In 1965, David Anderson and Leo Schmitdt relate the ideal formation of an audit unit, specifically in terms of its functions, personnel and structure; In 1966, José Antonio Fernández developed a Comparative framework between different approaches to administrative auditing; In 1968, CA Clark visualized auditing as an important element in evaluating the role and social responsibility of the company. John C. Burton highlights the fundamental aspects of administrative auditing. Fernando Vilchis Plata explains how the audit report is integrated, how it should be prepared and what benefits its correct observance can bring to a company; In 1971, Agustín Reyes Ponce offers an overview of the administrative audit; In 1972,The Natural Productivity Center prepares the Self-Diagnosis Bases, a work that provides an alternative for companies to determine and prioritize the elements that affect their operation for decision-making purposes; In 1974, César González Alcántara retakes the importance of the function of control as a final stage of the process in addition to defining the structural, functional and human content of a comptroller; In 1975, Roy A. Lindberg and Theodore Cohn developed the methodological framework to implement an audit of the operations carried out by a company; In 1977, Patricia Diez de Bonilla and Jorge Álvarez Anguiano propose viable applications to put into practice and a methodological framework that allows understanding the essence of the audit in a more accessible way, respectively; In 1978,Ladislao Solares Vera disseminates the work whose synthesis gathers auditing standards, the characteristics of the service of an internal and independent auditor, the scope of a company based on the consideration of its functions and its application in the private company and public sector; In 1983, Spencer Hyden analyzes the work procedures of a company and proposes a way to evaluate them: In 1987, Gabriel Sánchez Curiel addresses the concept of operational auditing, the methodology to use it, the evaluation of systems, the report, and the implementation and follow-up of suggestions; In 1989, Joaquín Rodríguez Valencia analyzes the theoretical and practical aspects of administrative auditing, the differences with other kinds of audits, the most representative approaches, including his proposal and the procedure to carry it out; 1994,Jack Fleitman S. incorporates fundamental evaluation concepts with a deep focus; It shows the phases and methodology for its application, how to design and use questionnaires and certificates, and the use of practical cases to exemplify a specific application.

The works on auditing in their different meanings are so many and so varied that we have only listed the most significant and some of the most widespread, to establish a starting point. The importance of the topic and the concern to approach it with different approaches are undeniable, therefore, we can expect that the generation of works around the audit will continue to grow day by day.

CRITICAL ANALYSIS OF THE HISTORICAL BACKGROUND

The administrative audit arose from the need to measure and quantify the achievements of the company in a given period of time. It appears as an effective way to put the resources of the company in order to achieve better performance and productivity.

Since its inception, the manager's need to know what is failing or not being met, leads him to assess whether the plans are being carried out fully and whether the company is achieving its goals. The Administrative audit is necessary as a tool to quantify the administrative errors that are being made and to be able to correct them effectively.

The Administrative Audit is an essential part of the administrative process, because without control, the other steps of the process are not significant, so in addition, the audit goes hand in hand with the administration, as an integral part of the administrative process and not as another science apart from the administration itself.

Definition: An administrative audit is the comprehensive or partial examination of an organization with the purpose of specifying its level of performance and opportunities for improvement.