Audit Management - Archer IRM
Archer Audit Management transforms your reactive, compliance-focused internal audit function into a proactive, strategic enabler of the business.
Audit management is the process of analyzing and reviewing an organization’s system and managerial aspects like policies, procedures, objectives, control, etc., to detect the efficiency of the organization’s management over business operations. It centers on the inefficiencies and weak points of the management.
It is a valuable tool for evaluating and appraising the business operation methods and their various performances.
Audit and Types of Audit
Most times, an audit means a financial statement audit. An audit is an evaluation of the financial situation of the organization to be sure that the financial records are valid and represent everything that they claim to represent. The main types of audits include; internal audits, external audits, and internal revenue services.
Internal audit takes place within the organization. You, as the owner, bring it up while a qualified individual in your organization conducts the audit. Internal audit management is a good way for an organization to know to check on its finances to know if financial goals have been attained.
External audit is carried out by a third party. An external auditor must have no link to your organization and always follow the generally accepted auditing standards (GAAS). The external auditor makes sure that the organization’s financial records are up to date and accurate.
Internal Revenue Service (IRS) tax audit is used to check out how accurate an organization’s filed tax returns are. The auditors search for errors in your organization’s tax liabilities to ensure taxes weren’t underpaid or overpaid.
Objectives of Audit Management
The primary objectives of performing audit management are:
To ensure that all resources available are optimally utilized.
To point out the inefficiencies and deficiencies in the various levels of management and functional areas like production, sales, etc.
To analyze and suggest different methods and was to overcome the inefficiencies and deficiencies.
To critically analyze organizational structure and point out the weak links.
To suggest solutions on how to strengthen the organizational structure.
To assist the management by showing any signs of threats early to be avoided or prevented.
To anticipate disruptions in the workplace and suggest remedies that will handle them.
From the objectives listed, you can see how important it is to perform audit management in your organization.
Scope of Audit Management
Audit management is comprehensive, and its scopes have no limitations.
Some of the main scopes of Audit Management are:
Audit the entire management sector in an organization and calculate the effectiveness of management.
Executing procedures, principles, and policies to review whether they are effective and enhance the organization’s success.
Identifying the different productivity levels in the organization.
Suggesting room for improvement in any sector that is found lacking in the organization.
Reviewing the organization's relationship with its shareholders and dealing with any errors or issues that might arise.
Ensuring that the aims and objectives of the different management sectors (top-level, middle level, and operational level) in the organization are met.
Inefficiencies in an organization Shown by Audit Management
Audit management pinpoint many weaknesses in the organization, and some of them include:
Lack of technical competence amongst managers.
Lack of proper staff training and drills.
Weaknesses and deficiencies amongst members in the board of directors of an organization.
Lack of awareness and knowledge of the organization’s aims and objectives.
Inadequate measures taken to guarantee adequate finances.
Weakness in business resilience and operational resiliency due to lack of good management practices in the organization.
Failure of managers to do their significant jobs like checking and assessing staff performances.
Benefits of Audit Management.
Audit management is essential for an organization’s growth and development. Some of the other advantages of audit management include:
It makes it possible for experts to give their suggestions and opinions on improving business operations.
It puts organizations on the right path to achieving their business goals and objectives
It helps in showing and assessing the efficiency of the executives in an organization.
It shows ways organizations can utilize their resources maximally.
It greatly aids in organizational decision-making.
Audit management is quite necessary if you want to run a successful organization with competent managers and staff. If you don’t know how to go about audit management for your organization, contact Archer today. We have highly trained professionals ready to perform third-party appraisals and audits for your organization. You don’t have to bear the burden of doing it on your own; we know everything effective audit management entails, and we are your solution to enforcing them in your organization.
What is audit management?
Audit management is the process of analyzing and reviewing an organization’s system and managerial aspects to detect the efficiency of the organization’s management over business operations.
Can a third party carry out an organization’s audit management?
Yes, an organization’s audit management can be carried out by a third party.