MANAGEMENT

AUDIT
 INTRODUCTION
The Management Audit arose from the need to measure and quantifying the achievements  of the company
in a given period of time. It emerges as an effective way to put the company's resources in order to achieve
better performance and productivity. Management audit is a process that allows the review and evaluation
of the activities of an organization, sector, program, project or operation. Currently, the concept of
management auditing has been strengthened by means of orderly and systematic activities that focus on
evaluating the management of companies, in order to obtain a professional, independent and objective
opinion of how resources are being managed, how processes are being developed and what the degree of
management responsibility is, whether the products or services have been produced in compliance with
quality criteria and if the company has a model of indicators adapted to its needs, allowing it to measure the
effects and analyzing the causes of non-conformities in order to generate added value in the improvement
actions, this being one of the essential objectives of this control action.
 Based on criteria, such activity allows the degree of efficiency, effectiveness and quality to be
measured in the use of available resources, the development of processes and the delivery of
products or services, in accordance with the needs of clients. The management audit helps to
evaluate the level of compliance of the mission, policies, goals and objectives through indicators
that measure the degree of efficiency, effectiveness, and quality, as well as the impact it generates in
the sector. The management audit has 5 phases which are: Diagnostic and preliminary planning,
specific planning, execution, communication of results and follow-up; once done will result in a
report of the findings detected after the audit, in turn may also issue recommendations that will help
the organization to make appropriate decisions.
 In conclusion, management auditing is the systematic evaluation or examination of administrative,
operational and financial information presented by the managers of an organization, carried out after
its execution, to obtain sufficient evidence of the degree of efficiency, effectiveness and quality in the
achievement of proposed goals and objectives.
 TABLE OF CONTENTS
Basic Concepts
What is Control
What is internal control
Management control
What is audit
What is management
Management audit
Importance of Management audit
Objectives of the Management audit
Benefits of Management audit
Measurement terms
 Efficiency
 Efficacy
 quality
 TABLE OF CONTENTS
Information gathering techniques
 Verbal
 Eyepieces
 Physics
 Written
 documentaries

Methodological phases
 Phase I: diagnostic and preliminary planning
 Phase II: Specific planning
 Phase III: execution
 Phase IV: Communication of results
 Phase V: Follow-up
Basic Concepts
What is Control
Activity aimed at verifying compliance with plans, policies, standards
and procedures, identifying problems and possible corrective actions
What is internal control
It is the set of actions, activities, plans, policies, norms, records,
procedures and methods, including the environment and attitudes
developed by the authorities and their personnel in charge, with the
objective of preventing possible risks that affect the company.

Management control
Management activity that is developed inside the companies, directed
to assure the fulfillment of:
 The mission, objectives, plans, programs and goals
 The regulatory provisions regulating their performance
 Efficient management adjusted to quality parameters
 What is audit
Is an objective, systematic and professional
examination of the financial or administrative
operations, which have been previously carried
out by the company, by personnel completely
independent of the entity being evaluated, with
the aim of verifying and evaluating these
operations and preparing a report containing
comments, conclusions and recommendations.
What is management
Action and effect of managing the human,
technological, material and financial resources of
an organization, in order to meet its objectives
and goals.
Management audit
The process of reviewing and evaluating the
activities of an organization, sector, program, project
or operation. Activity that, based on criteria, allows a
degree of efficiency, effectiveness and quality to be
measured in the use of available resources, the
development of processes and the delivery of
products or services, in accordance with the needs of
clients.
Importance of Management audit
The importance of conducting a management audit can be summed up in the need to verify compliance with our company's goals and
objectives. Having the personal and productive resources necessary to carry out a business activity is not enough. We must know them
well in their use and control, evaluate them and, if necessary, modify them to improve our business and thus achieve maximum efficiency.

Objectives of the Management audit

 To evaluate the degree of fulfillment of the mission, policies, objectives, strategies, goals, considered in the plans and programs
through the application of management indicators that allow the degree of efficiency, effectiveness and quality to be measured, as well
as the impact that it generates in the sector;
 Identify and evaluate the variables generated by management in processes or activities that generate added value;
 Determine the degree of reliability of Internal Control through the evaluation of internal and external risks or risk factors that could
affect the achievement of goals and objectives.
Benefits of Management audit
 Identify problem areas, related causes and alternatives for improvement
 Identifies opportunities to eliminate problems encountered
 Identifies criteria for measuring the achievement of goals and objectives
 Evaluate management's information and control systems
 Detect and report irregularities
Measurement terms
 Efficiency
Effectiveness is the level of achievement
of goals and objectives. Efficiency refers
to our ability to achieve what we set out to
do.
 Efficacy
Efficiency is the level of use of the entity's
resources, where it is measured how
resources are optimized to achieve the
objective.
Quality
 In quality we measure the level of
customer satisfaction with respect to
the service the company is offering.
 
 Information gathering techniques
Procedures performed by auditors in order to obtain the necessary
evidence to carry out the audit in the company. (sufficient, competent and
relevant)
 Verbal
Allows to obtain oral information inside and outside the company
 Enquiry
 Surveys and questionnaires

 Eyepieces
Allows direct verification of the way in which those responsible carry out
the processes or procedures

 Physics
is the real recognition of facts or situations given in time and space
 Inspection
 Written
Is to reflect information important to the auditor's work
 Analysis
 Confirmation
 Calculation
 Tabulation

 Documentaries
Consists of obtaining written information to support the
statements, analysis and criteria of the auditor
 ascertainment
 computing
 general survey
Methodological phases
Phase I: diagnostic and preliminary planning
It consists of obtaining an integral knowledge of the object of the entity, giving
greater emphasis to its main activity; this will allow an adequate planning, execution
and achievement of audit results at a reasonable cost and time.
Phase II: Specific planning
This phase fulfills a fundamental objective, which is to design a tailor-made work strategy since its
procedures are designed on the basis of the degree of compliance with internal control.
Phase III: execution
At this stage, it is where the audit is properly executed, since in this instance the findings are developed
and all the necessary evidence is obtained in appropriate quantity and quality (sufficient, competent and
relevant), based on the audit criteria and procedures defined in each program, to support the conclusions
and recommendations of the reports.
Phase IV: Communication of results
This is the final product of the auditor's work, in which he presents his observations, conclusions and
recommendations to the audited company.
Phase V: Follow-up
The Auditors will follow up with the entity for the next purpose:
Verify compliance with the implementation plan of the recommendations in accordance with the agreed
deadlines.
Verify that the levels of efficiency, effectiveness and economy have been raised as a result of this
implementation.