The administrative audit is the evaluation and analysis of the organizational structure of a company or institution in order to know its operation and determine the opportunities to improve the quality and competitiveness of its goods or services.
Through the administrative audit it is possible to assess whether the administration of a company meets the objectives proposed in the organization, management and control plans according to its needs.
Administrative audits must be carried out in all companies or institutions, small, medium and large, private or public, and in all their departments, in order to achieve the greatest effectiveness of these organizational structures.
Background of the administrative audit
According to various investigations, the idea of administrative audit appears, but in other words, in the Hammurabi Code, in which the importance of keeping track of trade is mentioned, so this is not a new term.
In 1935 James O. McKinsey, was the author who determined the basis of the administrative audit, exposing the importance of evaluating the position of the company in order to determine where you want to go and the desired objectives reach.
On the other hand, in 1959 Víctor Lazzaro published a book called Systems and Procedures where he presents the contribution and importance of carrying out an administrative audit in companies or institutions.
Later, in 1971 the author Agustín Reyes Ponce contributes his vision of how the audit of human resources is related to the administrative audit.
The term of administrative audit, however, has been continually adapting to the needs of modern administration, so there have been numerous authors, who over the years have incorporated new points of interest to the subject.
Objectives of the administrative audit
The main objective of the administrative audit is to determine what are the deficiencies or irregularities that occur in the various dependencies of a company or institution and solve the problem.
- Channel the actions of optimization of the resources that the company or institution has according to its administration.
- Evaluate whether the service offered, based on the internal organization that each company or institution must have, meets the expectations of the customers.
- Promote, through management plans and models, the increase in the levels of quality and competitiveness of the services or goods offered to the public.
- Determine what are the poor management methods that generate losses, based on preventing this from happening.
- Identify the successes of the administration of the company and how its results approximate the proposed objectives.
- Establish which are the work instruments that contribute or delay the development of the company or institution.
- Analyze the administrative functions and their relationship with the other dependencies of the company or institution.
Methodology of the administrative audit
The methodology used allows to organize the information collected during the audit process, in an easy and accessible way, to then expose the results and determine the steps to follow in order to optimize the operation of the company or institution.
Planning: these are the guidelines to follow to carry out the administrative audit that covers the main factors to be evaluated.
Instrumentation: the most effective techniques for data collection are selected and applied.
Examination: the necessary analysis techniques are applied to establish the characteristics of the administration and gather the data that will allow to assess the situation of the company or institution.
Report: at the end of the administrative audit, a report is written in which the audited area is identified, the objective of the evaluation, the duration of the process, the scope obtained, the resources and the methods applied.
Importance of the administrative audit
The administrative audit is a fundamental tool to detect the deficiencies and / or areas of opportunity that drive the continuous development of a company or institution.
Administrative audits should be carried out at least once a year, both in public and private companies, in order to obtain updated information about how it works, with what account and what it lacks.
The result of the audit is of vital importance to then make the most accurate decisions based on the good performance of the work teams and materials that allow the operation of the company.
On many occasions, it is through audits that the directors or senior managers of a company or institution have had to make the decision to make significant investments, close plants or even dispense with personnel.
Scope of the administrative audit
Administrative audits include different aspects that, when evaluated and analyzed, allow to determine the current state of a company and how to improve or maintain its operation and quality of service.
The scope of the administrative audit determines how wide and deep the evaluation will be, since it can cover a department, area, or even the entire company.
Therefore, it deals with aspects such as hierarchical level, development and use of technologies, human resources, number of employees, communication systems, performance level, work environment, customer service, etc.
Administrative audits are applicable to all organizations, especially if at the end of the process the company or institution obtains a quality certification.