Activity # 5: Administrative Audit

Johana Peña Henao

Faculty of Engineering. Northern Catholic University Foundation.

Administrative audit

Teacher: Nelson Darío Caicedo Restrepo

May 24, 2021

The administrative audit is the deep analysis of the organizational structure of a company,
where all its processes are inclined to fulfill the same objective. The principles, goals and
purposes of an institution are relevant aspects to know its operation, take advantage of
opportunities for improvement, quality and competitiveness; as well as testing the variables
that are not working so well, rethinking them with functional and proactive ideas.

An administrative audit will aim to achieve the development and potential growth of the
organization through strategies that promote the value of the company and bring out the
beneficial aspects and that include planning, control, direction and excellent teamwork in
all functional areas.

The administrative audit, starting with James O. McKinsey, within the American Economic
Association, defining it as “an evaluation of a company in all aspects, in light of its present
environment and probable future”.

It is an exhaustive study of a company, where the DNA of the brand is searched, the
purpose to which it is linked is investigated, its birth, its objectives, the strategic plans that
have been had over the years and the positive or negative response that has been made.
thrown off. This audit is an indispensable tool in any organization, it is multifunctional in
the areas of planning, organization, execution and administrative control, in addition to the
interactive and corrective supervision of all work processes, in addition to the good
management of information systems, which help to development, performance and to offer
and growth.

The administrative audit is always involved in the production and growth process;
Autonomy generates self-review, control, supervision, correction and awareness of
comprehensive or fragmented analytical methods in the company. It even contributes to
innovation and good progress of sustainable competitiveness.

The main objectives of the administrative audit consist of reviewing and recognizing the
deficiencies or irregularities found in the various areas and solving the root problem with
critical, analytical and functional methodologies. The intention of this audit is to channel
the actions to optimize resources, evaluate the service and customer expectations, promote
through targeted management the levels of quality and competitiveness offered to the
public, identify management methods with flaws and that generate losses, take into account
the successes and good decisions that the company has had, establish the work instruments
that facilitate and optimize the work processes and eliminate those that may delay business
activities and finally understand the administrative functions and the ties with the other
dependencies.
The administrative audit has established principles; the sense of evolution: which aims to
carry out an examination of individual and collective effectiveness, to know if adequate
decisions have been made, and that they do not affect institutional policies, objectives and
the economy. Importance of the verification process: it is determined what is being done at
the directive, administrative and operational levels; supporting technical verification
procedures, direct observation, information verification, and data analysis. Ability to think
in administrative terms: it will be thought in the administrative sense, so that the auditor
has complete confidence and puts himself in the administrator's place.

The administrative audit can be applied to any organizational context, be it public, private,
social or cooperative companies. The environment is a factor that influences and articulates
the development of organizations, an excellent work environment makes the company
more functional and productive, which requires specifying its appearance, area of control
and size.

In the administrative audit we can find 4 stages:

1. Planning: the sequential development of activities within the programs is defined, such
as determining the time required for the development of each of the stages.
2. The examination: begins with the execution of the programs to obtain the necessary
information, such as opinion polls, questionnaires, direct observations.
3. The evaluation: the auditor studies and analyzes all the information, processing the
data, evaluating the results and determining a correct solution.
4. The presentation: report in written form with the results, with suggestions, agreements
made or results of your work.

A good audit is based on the conclusions obtained, on scientific means to interpret the
information and to verify that it is an indisputable evaluation.
The application of an administrative audit in the different companies can take different
methods of action depending on their structure, getting to know the company in depth,
knowing the path traveled to know where the company is and where it wants to go without
losing the principles and the DNA.

Carrying out an administrative audit once a year, starting with a specific area until reaching
the entire company, will be a support to the management, who from an external point of
view can see points that are invisible to the eyes of the internal members of the
organization. Providing help to protect the interests of investors and other business and
competitive activities in the market.
 References

Montilla Galvis, O. and Herrera Marchena, L.G. (2005) Administrative Audit. Scielo
Magazine.
http://www.scielo.org.co/scielo.php?script=sci_arttext&pid=S0123-59232006000100004

Bogdanski Tomasz, Santana E Pamela and Portillo Alma Delia (2016) Administrative
Audit. Editorial Digital Unid. Taken from: https://books.google.es/books?
hl=es&lr=&id=bopyDQAAQBAJ&oi=fnd&pg=PT2&dq=info:NVJMAa3CEy4J:scholar.g
oogle.com/&ots=oYLEsDZdeU&sig=HYu5yutDMKw9L-re page

Administrative Audit (s.f). Taken from:

Jiménez Yolanda. (s.f). Administrative audit. Gerencie.com. Taken from: