Business administration in a process of basic functions different from each other, such as planning, organization, direction, execution and control. In the business field, it is a tool that allows you to face the frequent challenges found in it.
In administrative theory, the concept of efficiency has been inherited from economics and is considered as a guiding principle.
The evaluation of the organizational performance is important because it allows establishing the degree to which the objectives have been reached, which are almost always identified with those of the management, and the capacity and pertinent to administrative practice are also valued. However, when carrying out an evaluation simply from the classic efficiency criteria, the scope is reduced and the conception of the company is sectorized, as well as the potentiality of human participatory action, since evaluation is reduced to being an instrument of coercive control of the management for the rest of the members of the organization and only measures the purposes that are relevant for it.
Therefore, a critical recovery of perspectives and techniques that allow a comprehensive evaluation is necessary, that is, that involves the different processes and purposes that are present in organizations.
In our specific case, the audit technique will be discussed, as well as what will be developed throughout three chapters.
In Chapter I we will detail the Audit, starting with its historical background, some definitions given by different authors and the one developed by the group, its purpose and classification.
Chapter II will be developed in a comprehensive and detailed way, regarding the Administrative Audit, the purposes, principles, objectives, scope and methods.
Chapter III will be devoted to the development of the Auditor, highlighting its functions, abilities and skills and something very important such as professional responsibility.
CHAPTER I
THE AUDITORY
1.1. Background
The audit is one of the applications of the scientific principles of accounting, based on the verification of the patrimonial records of the estates, to observe their accuracy; however, this is not its only objective.
Its importance is recognized from the earliest times, having knowledge of its existence already in the distant times of the Sumerian civilization.
Still prove that the term auditor evidencing the title of who practices this technique, appeared in the late eighteenth century, in England during the reign of Edward I.
In various countries of Europe, during the Middle Ages, many were the professional associations, which were in charge of executing audit functions, standing out among them the London councils (England), in 1.310, the College of Accountants, Venice (Italy), 1,581.
The industrial revolution carried out in the second half of the eighteenth century, gave new directions to accounting techniques, especially auditing, moving to meet the needs created by the appearance of large companies (where nature is service is practically mandatory).
It was preannounced in 1845, that is, shortly after penetrating the accounting of the scientific domains and the “Railway Companies Consolidation Act” already required the annual verification of the balances that the auditors had to make.
Also in the United States of America, an important association takes care of the auditing standards, which published various regulations, of which the first that we know dates from October 1939, while others consolidated the various standards in December 1939, March 1941, June 1942 and December 1943.
The future of our country is foreseen for the accounting profession in the auditing sector is really very great, which is why they should create, in our teaching circle, a chair for the study of the subject, encouraging learning and also organize courses similar to those that in other countries are made.
1.2. Definitions
Initially, the audit was limited to the verifications of the accounting records, dedicating itself to observing if they were exact.
Therefore this was the primary way: Confront what was written with the evidence of what happened and the respective references in the records.
Over time, the scope of the audit has continued to expand; however, many still judge it as the exclusive carrier of that remote object, that is, to observe the veracity and accuracy of the records.
In a simple and clear way, Holmes writes:
“… The audit is the examination of the demonstrations and administrative records. The auditor observes the accuracy, integrity, and authenticity of such demonstrations, records, and documents. ”
On the other hand we have the synthetic conceptualization of a professor at Harvard University who expresses the following:
"… the examination of all accounting entries in order to verify their accuracy, as well as the veracity of the statements or situations that these entries produce."
Taking into account the above criteria, we can say that auditing is the activity by which the accounting correction of the figures in the financial statements is verified; It is the review of the records and accounting sources to determine the reasonableness of the figures that show the financial statements emanating from them.
1.3. objective
The objective of the Audit is to support the members of the company in the performance of their activities. For this, the Audit provides them with analysis, evaluations, recommendations, advice and information regarding the activities reviewed.
The members of the organization that Audit supports include the Board and the Management.
1.4. Purpose
The purposes of the audit are the aspects under which its object is observed. We can write the following:
- Investigations and determinations on the financial status Investigations and determinations on the financial statements Investigations and determinations on the profitable state Discovering errors and fraud Preventing errors and fraud General studies on special cases, such as:
- Examinations of tax and legal aspects Examination for the purchase of a company (transfer of assets) Examination to determine the basis of criteria for apportionment, among others.
The varied purposes of the audit show, on their own, the usefulness of this technique.
- Audit Classification
External audit
Applying the general concept, it can be said that the External audit is the critical, systematic and detailed examination of an information system of an economic unit, carried out by a Public Accountant with no working ties to it, using certain techniques and in order to issue an independent opinion on the way the system operates, its internal control and make suggestions for its improvement. The independent opinion or opinion is relevant to third parties, since it gives full validity to the information generated by the system since it is produced under the figure of the Public Faith, which forces them to have full credibility in the information examined.
The External Audit examines and evaluates any of the information systems of an organization and issues an independent opinion on them, but companies generally require the evaluation of their financial information system independently to grant validity to the users of the product of This, which is why the term External Audit has traditionally been associated with the Audit of Financial Statements, which as observed is not totally equivalent, since there may be External Audit of the Tax Information System, External Audit of the Administrative Information System, External Audit of the Automatic Information System etc.
The purpose of the External or Independent Audit is to find out the reasonableness, integrity and authenticity of the states, files and documents and all that information produced by the organization's systems.
An External Audit is carried out when it is intended to publish the product of the information system examined in order to accompany it with an independent opinion that gives it authenticity and allows users of said information to make decisions relying on the statements of the Auditor.
An audit should be conducted by a recognized independent person or firm of professional capacity. This person or firm should be able to offer an impartial and professionally expert opinion about the audit results, based on the fact that their opinion must accompany the report presented at the end of the examination and granting that an opinion based on the veracity of the documents and financial statements and that there are no restrictions placed on the auditor in his investigative work.
Under any circumstances, a successful Professional Accountant is distinguished by a combination of a thorough knowledge of accounting principles and procedures, sound judgment, adequate professional studies, and reasonable and impartial mental receptivity.
Internal audit
The internal audit is the critical, systematic and detailed examination of an information system of an economic unit, carried out by a professional with working links with it, using certain techniques and with the aim of issuing reports and formulating suggestions for improving the same. These reports are of internal circulation and are not relevant to third parties, as they are not produced under the figure of the Public Faith.
Internal audits are done by company personnel. An internal auditor is in charge of the permanent evaluation of the control of transactions and operations and is concerned with suggesting the improvement of internal control methods and procedures that result in a more efficient and effective operation. When the audit is conducted by independent professional Public Accountants, the opinion of a disinterested and impartial expert constitutes a definite advantage for the company and a guarantee of protection for the interests of the shareholders, creditors and the Public. Absolute impartiality and independence are not possible in the case of the internal auditor, since he cannot completely divorce himself from the influence of senior management, and although he maintains an independent attitude as it should be,This can be questioned in the eyes of third parties. For this reason, it can be affirmed that the Auditor should not only be independent, but also appear so in order to obtain the public's trust.
Internal audit is a service that reports to the highest level of the organization's management and has the characteristics of a control advisory function, therefore it cannot and should not have line authority over any company official, with the exception of those who form part of the plant of the internal audit office, nor should it be in any way involved or committed to the operations of the company's systems, since its function is to evaluate and comment on them, so that senior management takes the necessary measures to its best performance. Internal auditing only intervenes in the operations and decisions of its office, but never in the operations and decisions of the organization to which it provides its services, since, as stated, it is an advisory function.
Differences between internal and external audit:
There are substantial differences between Internal Audit and External Audit, some of which can be detailed as follows:
- In Internal Audit there is a working relationship between the auditor and the company, while in External Audit the relationship is civil. In Internal Audit the auditor's diagnosis is intended for the company; In the case of the External Audit this opinion is generally intended for third parties or outside the company. The Internal Audit is disabled to give Public Faith, due to its contractual employment relationship, while the External Audit has the legal power to give Faith Public.
CHAPTER II
ADMINISTRATIVE AUDIT
2.1. Background
With the purpose of locating how it has been enriched over time, it is convenient to review the contributions of the authors who have had a more significant impact throughout the history of the administration.
In 1935, James O. McKinsey, within the American Economic Association, laid the foundations for what he called "administrative auditing", which, in his words, consisted of "an evaluation of a company in all its aspects, in light of their present and probable future environment. "
Later, in 1953, George R. Terry, in Principles of Administration, points out that «The periodic confrontation of the planning, organization, execution and administrative control of a company, with what could be called the prototype of a successful operation, is the essential meaning of administrative audit. "
Two years later, in 1955, Harold Koontz and Ciryl O´Donnell, also in their Management Principles, propose self-audit, as a technique of total performance control, which would be intended to "assess the position of the company to determine where you are, where you are going with the current programs, what your goals should be and whether revised plans are needed to achieve these goals. ”
The interest in this technique led Alfred Klein and Nathan Grabinsky in 1958 to prepare The Factor Analysis, a work in which they study "the causes of low productivity to establish the basis for improving it" through a method that identifies and quantifies the factors and functions involved in the operation of an organization.
After one year, in 1959, two relevant events occur that contribute to the evolution of administrative auditing: 1) Víctor Lazzaro publishes his book on Systems and Procedures, in which he presents the contribution of William P. Leonard under the name of administrative audit and, 2) The American Institute of Management, in the Manual of Excellence Managements integrates a method to audit for-profit and non-profit companies, taking into account their function, structure, growth, financial policies, operational efficiency and administrative evaluation.
The attractiveness of the subject extends to the academic field and, in 1960, Alfonso Mejía Fernández, from the National School of Commerce and Administration of the National Autonomous University of Mexico, in his professional thesis The Audit of the Functions of Business Management, it makes a count of the structural and functional aspects that the managerial level of the companies must contemplate to apply an administrative audit.
For 1962, Roberto Macías Pineda, from the Higher School of Commerce and Administration of the National Polytechnic Institute, within the doctorate program in administrative sciences, in the subject Theory of Administration, allocates a space to present an administrative audit work.
On the other hand, in 1964, Manuel D´Azaola S., from the National School of Commerce and Administration of the National Autonomous University of Mexico, in his professional thesis The Review of the Administrative Process, considers the need for companies to analyze their behavior from the review of the functions of management, financing, personnel, production, sales and distribution, as well as accounting and statistical registration.
At the end of 1965, Edward F. Norbeck released his book Administrative Audit, where he defined the concept, content and instruments to apply the audit. Likewise, it specifies the differences between the administrative audit and the financial audit, and develops the criteria for the integration of the team of auditors in their different modalities.
In 1966, José Antonio Fernández Arena, presented the first version of his text The Administrative Audit, in which he developed a comparative framework between different approaches to administrative audit, presenting a proposal based on his own vision of the technique.
Later, in 1971, two new contributions were generated: Agustín Reyes Ponce, in Personnel Administration, dedicated a section to deal with the subject, offering an overview of administrative auditing, while William P. Leonard published Administrative Auditing: Evaluation Administrative Methods and Efficiency, where it incorporates the fundamental concepts and programs for the execution of the administrative audit.
For 1977, the contributions of two authors on the subject are added. Patricia Diez de Bonilla in her Manual of Practical Cases on Administrative Auditing, proposes viable applications to put into practice and, Jorge Álvarez Anguiano, in Notes on Administrative Auditing includes a methodological framework that allows for an understanding of administrative auditing in an accessible way.
In 1978, the National Association of Graduates in Administration released the Administrative Audit document, which gathers the rules for its implementation in public and private organizations.
Shortly after, in 1984, Robert J. Thierauf presents Administrative Audit with Job Questionnaires, a work that introduces administrative auditing and how to apply it on a question base to evaluate functional areas, work environment and information systems.
In 1988, the Office of the Comptroller General of the United States of America prepared the Government Auditing Standards, which are reviewed by the Comptroller General of Finance (entity of the Ministry of Finance and Public Credit), which contain general guidelines for the execution of audits in public offices.
At the beginning of the nineties, the Secretariat of the General Comptroller of the Federation took on the task of preparing and disseminating norms, guidelines, programs and frameworks for institutions, work that, in its current situation, as Secretary of Comptroller and Administrative Development, continues to expand and enrich.
2.2. Definitions
We can define administrative auditing as the comprehensive or partial examination of an organization in order to specify its level of performance and opportunities for improvement.
According to Williams P. Leonard, the administrative audit is defined as:
“A complete and constructive examination of the organizational structure of the company, institution or government department; or any other entity and its control methods, means of operation and employment that gives its human and material resources. ”
While Fernández Arena JA maintains that it is an objective, methodical and complete review of the satisfaction of institutional objectives, based on the hierarchical levels of the company, in terms of its structure, and the individual participation of the members of the institution.
The distinctive aspect of these various uses of the term is that each audit case is carried out according to the meaning of this audit for senior management. Other definitions of administrative audit have been formulated in a context independent of senior management, for the benefit of third parties.
2.3. Administrative audit needs
In the last two decades there have been enormous advances in information technology, in the present decade it seems very likely that there will be a great demand for information regarding the performance of social organizations. Traditional (financial) auditing has historically been concerned with complying with regulatory and custody requirements, especially in financial control. This service has been, and continues to be, of great significance and value to our industrial, commercial and service communities in order to keep it confined to financial reporting.
With the development of information systems technology, the need to examine and evaluate the adequacy of administrative information, as well as its accuracy, has grown. Currently, there is an increasing need for officials to have someone who is capable of carrying out the examination and evaluation of:
- The quality, both individual and collective, of managers (functional administrative audit) The quality of the processes by which an organism operates (analytical audit)
What is really interesting to highlight is that there really is a need to examine and evaluate the external and internal factors of the company and this should be done systematically, covering the entire company.
2.4. Objectives of the administrative audit
Among the priority objectives to implement it consistently we have the following:
Control.- Intended to guide efforts in its application and to evaluate organizational behavior in relation to pre-established standards.
Productivity.- They channel actions to optimize the use of resources in accordance with the administrative dynamics instituted by the organization.
Organizational.- They determine that their course supports the definition of the structure, competence, functions and processes through the effective management of the delegation of authority and teamwork.
Service.- They represent the way in which it can be verified that the organization is immersed in a process that links it quantitatively and qualitatively with the expectations and satisfaction of its customers.
Quality.- They provide that it tends to raise the performance levels of the organization in all its contents and areas, so that it produces highly competitive goods and services.
Of change.- They transform it into an instrument that makes the organization more permeable and receptive.
Learning.- They allow it to become an institutional learning mechanism so that the organization can assimilate its experiences and capitalize on them to turn them into opportunities for improvement.
Decision- making.- They translate their implementation and results into a solid instrument to support the organization's management process.
2.5. Principles of administrative audit
It is convenient now to deal with the basic principles in administrative audits, which become part of the theoretical structure of it, therefore we must emphasize three fundamental principles that are as follows:
Sense of evaluation
The administrative audit does not attempt to evaluate the technical capacity of engineers, accountants, lawyers or other specialists, in the execution of their respective work. Rather, it is in charge of carrying out an examination and evaluation of the quality, both individual and collective, of the managers, that is, people responsible for the administration of operational functions and to see if they have taken pertinent models that ensure the implementation of adequate administrative controls, to ensure that the quality of work is in accordance with established standards, that plans and objectives are met, and that resources are applied economically.
Importance of the verification process
One responsibility of administrative auditing is to determine what I am really doing at managerial, administrative, and operational levels; Practice indicates that this is not always in accordance with what he or the area manager or supervisor thinks is happening. The administrative audit procedures technically support the verification in direct observation, the verification of land information, and the analysis and confirmation of data, which are necessary and essential.
Ability to think administratively
The administrative auditor should be in the position of an administrator who is responsible for an operational function and think how he / she does it (or should do it). In itself, it is about thinking administratively, which is a very important attribute for the administrative auditor.
2.6. Scope
Regarding its area of influence, it includes its structure, levels, relationships and forms of action. This connotation includes aspects such as:
- Legal nature Operating criteria Management style Administrative process Activity sector Operation scope Number of employees Coordination relationships Technological development Communication and information systems Performance level Customer service (internal and external) Environment Products and / or services Quality systems
2.7. Scope
Regarding its field, the administrative audit can be implemented in all types of organization, be it public, private or social.
In the Public Sector it is used depending on the legal status, powers, scope of operation, level of authority, coordination relationship, work system and general lines of strategy. Based on these criteria, the sector institutions are classified into:
- Federal Executive Office (Secretary of State)
2. Parastatal Entity
3. Autonomous Organizations
4. State Governments (Federal Entities)
5. Inter-ministerial Commissions
6. Special Mechanisms
In the Private Sector it is used taking into account the legal figure, object, type of structure, elements of coordination and commercial relationship of the companies, based on the following characteristics:
- Company size
2. Activity sector
3. Nature of its operations
Regarding size, they are conventionally classified as:
- Microenterprise
2. Small enterprise
3. Medium enterprise
4. Large enterprise
The corresponding to the activity sector refers to the specific branch of the company, which can be basically framed in:
- Telecommunications
Transport
3. Energy
4. Services
5. Construction
6. Petrochemical
7. Tourism
8. Cinematography
9. Banking
10. Insurance
11. Maquiladora
12. Electronics
13. Automotive
14. Editorial
15. Graphic art
16. Manufacturing
17. Treasury stock
18. Textile
19. Agricultural
20. Fishing
21. Chemical
22. Forest
23. Pharmaceutical
24. Food and Beverages
25. Computing
26. Iron
and steel industry 27. Advertising
28. Commerce
Regarding the nature of their operations, companies can be grouped into:
- National
2. International
3. Mixed
Also taking into account the modalities of:
- Export
2. License
Agreement 3. Administration Contracts
4. Participating Companies and Strategic Alliances
5. Subsidiaries
In the Social Sector, it is applied considering two factors:
- Type of organization
2. Nature of its function
Due to their type of organization they are:
- Foundations
2. Groups
3. Associations
4. Societies
5. Funds
6. Solidarity companies
7. Programs
8. Projects
9. Commissions
10. Schools
Due to the nature of their function, they are located in the following areas:
- Education
2. Culture
3. Health and social security
4. Politics
- Worker
- Peasant
- Popular
5. Employment
6. Food
7. Human rights
8. Support for the marginalized and disabled
We can conclude that the application of an administrative audit in organizations can take different courses of action, depending on their organic structure, purpose, line of business, nature of their products and services, level of development and, in particular, with the degree and form delegation of authority.
The conjunction of these factors, taking into account the regulatory and operational aspects, the relationships with the environment and the territorial location of the areas and established control mechanisms, constitute the basis for structuring a line of action capable of causing and promoting personal change. and institutional necessary for an audit study to be translated into a solid innovative project.
2.8. Factors and methodologies
1.- Plans and Objectives.
Examine and discuss with management the current status of plans and objectives.
2.- Organization.
- a) Study the organization structure in the area that is valued. b) Compare the present structure with the one that appears in the organization chart of the company, (if any). c) Make sure if it is granted or not a full estimate of the principles of good organization, operation and departmentalization.
3.- Policies and Practices.
Do a study to see what action (if required) should be taken to improve the effectiveness of policies and practices.
4.- Regulations.
Determine if the company cares about complying with local, state, and federal regulations.
5.- Systems and Procedures.
Study the systems and procedures to see if they have deficiencies or irregularities in their elements under examination and devise methods to achieve improvements.
6.- Controls.
Determine if the control methods are adequate and effective.
7.- Operations.
Evaluate operations in order to specify which aspects need better control, communication, coordination, in order to achieve better results.
8.- Personnel.
Study the general needs of personnel and their application to work in the area subject to evaluation.
9.- Physical Equipment and its Disposition.
To determine if improvements could be made in the equipment layout for a better or more extensive use of it.
10.- Report.
Prepare a report of the deficiencies found and record in it the appropriate remedies.
CHAPTER III
THE AUDITOR
3.1 Definition
It is that professional person, who is engaged in audit work, usually with free exercise of a technical occupation.
3.2. General functions
To order and print cohesion to his work, the auditor has a series of functions aimed at studying, analyzing and diagnosing the structure and general functioning of an organization.
The standard functions of the auditor are:
- Study the regulations, mission, objectives, policies, strategies, plans and work programs. Develop the work program of an audit. Define the objectives, scope and methodology to implement an audit. Capture the necessary information to evaluate the functionality and effectiveness of the processes, functions and systems used. Collect and review statistics on workloads and volumes. Diagnose on operating methods and information systems. Detect findings and evidence and incorporate them into work papers. Respect dictated standards of action. by affiliation groups, corporate, sectoral and regulatory bodies and, where appropriate, globalizing.Propose administrative systems and / or modifications to increase the effectiveness of the organization Analyze the structure and operation of the organization in all its fields and levels Review the flow of data and forms Consider the environmental and economic variables that affect the operation of the Organization. Analyze the distribution of space and the use of office equipment. Evaluate accounting records and financial information. Maintain the level of performance through interaction and continuous review of progress. Propose the elements of cutting-edge technology required to promote the organizational change. Design and prepare progress reports and audit reports.Consider the environmental and economic variables that affect the operation of the organization. Analyze the distribution of space and the use of office equipment. Evaluate accounting records and financial information. Maintain the level of performance through continuous interaction and review of Advances. Propose the elements of state-of-the-art technology required to drive organizational change. Design and prepare progress reports and audit reports.Consider the environmental and economic variables that affect the operation of the organization. Analyze the distribution of space and the use of office equipment. Evaluate accounting records and financial information. Maintain the level of performance through continuous interaction and review of Advances. Propose the elements of state-of-the-art technology required to drive organizational change. Design and prepare progress reports and audit reports.Propose the elements of cutting-edge technology required to drive organizational change. Design and prepare progress reports and audit reports.Propose the elements of cutting-edge technology required to drive organizational change. Design and prepare progress reports and audit reports.
3.3. Knowledge you must possess
It is advisable for the audit team to have a preparation in accordance with the requirements of an administrative audit, since this will allow it to interact naturally and consistently with the study mechanisms that will be used in one way or another during its development.
In response to these needs, it is advisable to appreciate the following levels of training:
Academic
Studies at a technical level, bachelor's or postgraduate degree in administration, computer science, communication, political science, public administration, industrial relations, industrial engineering, psychology, pedagogy, systems engineering, accounting, law, international relations and graphic design.
Other specialties such as acting, mathematics, engineering and architecture can be considered as long as they have received training that allows them to intervene in the study.
Complementary
Instruction in the subject, obtained throughout the professional life through diploma courses, seminars, forums and courses, among others.
Empirical
Knowledge resulting from the implementation of audits in different institutions without having an academic degree.
Additionally, they must know how to operate computer and office equipment, and be proficient in it or the languages that are part of the work dynamics of the organization under examination. They will also need to consider and understand the encrypted organizational behavior in their culture.
A continuous updating of knowledge will allow the auditor to acquire the necessary maturity of judgment to exercise his or her function in a prudent and fair manner.
3.4. Skills and abilities
In addition to professional, theoretical and / or practical training, the audit team demands other qualities that are decisive in their work, referring to personal resources as a result of their development and gifts intrinsic to their character.
The expression of these attributes can vary according to the way of being and the duty of each particular case, however, it is convenient that whoever takes on the task of fulfilling the role of auditor should possess the following characteristics::
- Positive attitude, emotional stability, objectivity, institutional sense, knowing how to listen, creativity, respect for the ideas of others, analytical mind, awareness of own values and those of their environment, ability to negotiate, imagination, clarity of verbal and written expression. Observation skills, Initiative, Discretion, Ease of group work, Ethical behavior.
3.5. Experience
One of the fundamental elements that must be considered in the characteristics of the team is that related to their personal experience of its members, since the professional care and diligence that is used to determine the depth of the observations largely depends on it..
Due to the nature of the function to be performed, there are several fields that must be mastered:
- Knowledge of the substantive areas of the organization. Knowledge of the adjective areas of the organization. Knowledge of previous efforts. Knowledge of practical cases. Knowledge derived from the implementation of other organizational studies. Personal knowledge based on various elements.
3.6. Professional responsibility
The audit team must carry out its work using all its capacity, intelligence and judgment to determine the scope, strategy and techniques to be applied in an audit, as well as to evaluate the results and present the corresponding reports.
For this effect, you must pay special attention to:
- Preserve mental independence Carry out your work on the basis of acquired knowledge and professional capacity Comply with the standards or criteria that are set out Train yourself continuously
You also need to keep yourself free from impediments that detract from the credibility of your judgments, because you must preserve your autonomy and impartiality when participating in an audit.
It should be noted that the impediments that you can normally face are: personal and external.
The former correspond to circumstances that fall specifically on the auditor and that by their nature may affect their performance, highlighting the following:
- Personal, professional, financial or official links with the organization to be audited-Personal financial interest in the audit-Co-responsibility in incorrect operating conditions-Relationship with institutions that interact with the organization-Previous advantages obtained illegally or unethically
The latter are related to factors that limit the auditor to carry out their function in a timely and objective manner such as:
- External interference in the selection or application of techniques or methodology for the execution of the audit Interference with internal control bodies Limited resources to distort the scope of the audit Unjustified pressure to promote induced errors
In these cases, it has the duty to inform the organization so that the necessary measures are taken.
Finally, the audit team must not forget that the strength of its function is subject to the extent to which it meets its commitment with respect and in adherence to professional standards such as:
- - Maintain an independent view of the facts, avoiding making judgments or falling into omissions, which in any way alter the results obtained. - Observe professional conduct, fulfilling their orders in a timely and efficient manner. - Preserving their values above pressure..– Keep the information secret and do not use it for your own benefit or the interests of others.– Keep in mind your obligations to yourself and the organization for which you provide your services. - Do not lose the dimension of reality and the meaning of the facts.– Accept your condition and try to give your best with your own resources, avoiding accepting commitments or deals of any kind.– Do not forget that your professional ethics obliges you to respect and obey the organization to which you belong.- Use their capacity for discernment in a balanced way. - Assume an attitude and ability to respond quickly and effectively. - Do not get personally involved in the facts, keeping their objectivity regardless of personal preferences. - Be purposeful and innovative in the development of his work.
CONCLUSION
The auditor is the process of accumulating and evaluating evidence, carried out by an independent and competent person about the quantifiable information of a specific economic entity, with the purpose of determining and reporting on the degree of correspondence between the quantifiable information and the established criteria..
Its importance is recognized from the earliest times, having knowledge of its existence already in the distant times of the Sumerian civilization.
The time factor forces many things to change, industry, commerce, public services, among others. As companies grow, the administration becomes more complicated, with internal verification and control becoming more important, due to a greater delegation of authorities and the responsibility of officials.
Due to all the administrative problems, new dimensions of administrative thought have appeared with the advance of time. One of these dimensions is the administrative audit which is a detailed examination of the administration of a social organism, carried out by a professional (auditor), that is, it is a new control and evaluation tool considered as a professional service to comprehensively examine a social organism with the purpose of discovering opportunities to improve its administration.
Taking into account all the investigations carried out, we can conclude that the audit is dynamic, which should be formally applied by every company, regardless of its size and objectives; Even in small companies, where it is considered inoperative, its application must be verified sequentially to achieve efficiency.
BIBLIOGRAPHY
- Alvin A. Arens. Year 1995. Audit A Comprehensive Ocean Approach. Encyclopedia of Auditing.Francisco Gómez Rondon. Administrative Audit Joaquin Rodríguez Valencia. 1997. Synopsis of Administrative Audit Professor A. López de SA. Year 1974. Audit CourseVíctor Lázzaro. Systems and ProceduresWilliam P. Leonard. Administrative audit
ADMINISTRATIVE AUDIT
Contributed by: Yolanda Jiménez - [email protected]
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