Work For ‘Administrative Audit’ Exam

Work for ‘Administrative Audit’ exam

Introduction

 The authors will focus on the present investigation are William P. Leonard and Víctor Rubio Ragazzoni and the conception that each has on planning within the methodology of the administrative audit. Both have similar methodologies regarding the administrative audit but are distanced in relation to the priority that the aspects involved in planning give it. Before delving into this issue we will review the definition of audit and methodology to achieve it. 

The administrative audit is defined as the total or partial analytical review of an organization with the purpose of specifying its level of performance and profile opportunities. It is in Franklin’s words, a self-criticism exercise that every company should have to ensure that all parties have optimal operation. The author of this book emphasizes that the audit is the most versatile tool and consistent with the reality of an organization, this because it involves the ability to readjust processes that are not giving the expected results, which requires an honest look on realityof a company. “Carrying out an administrative audit forces us to investigate, to penetrate the most recondite of its essence to assimilate the experiences and transform them into knowledge, to understand where an organization is located, how it got there, where, it left and where it wants to go".

In other words, the audit needsImprove the organization. An example that seems ideal to illustrate in broad strokes this process is the history of the American company McDonald´s.

Richard and Maurice McDonald´s were the brothers who in 1948 opened a small hamburger restaurant in San Bernardino, California called McDonald’s;But it was Ray Croac who had the vision of creating branches throughout the country and making it the multimillion -dollar company that is today. In the movie "The Founder" (hunger of power) that tells the story of McDonald’s there is a dialogue in which we talk about what could be illustrated in a simple way that it is an administrative audit. 

In a scene that takes place in a restaurant that Ray invites them to eat, the McDonald´s brothers tell him how the concept of McDonald’s came up. They decided to open a Drive-Thru restaurant, which were very fashionable at that time, but they quickly knew howorders did not arrive correct or on time;On the other hand, they also allowed them. Thanks to these observations they decided to close the restaurant for their high operating costs and focus on what really worked and generated a greater number of sales. "We had to reconfigure and rebuild" this line seems to me that it emphasizes what every organization must learn to do once the details that are not allowing their full potential to be caught. 

In this way the brothers did the business model that McDonalds is today, starting to remove the waitresses, use disposable, design a kitchen that made the most important production and cut faster: the waiting time, which only took three minutesdeliver an order, instead of thirty minutes that were conventional at that time. Today this is the seal of fast food and so I quickly collection notoriety mcdonald´s. We can observe how the administrative audit is even present as an unconscious exercise when a person decides to rethink the situation of his company and is questioned as better results can achieve. We can even trace examples of administrative audits throughout the story that were done when it was not yet a science. In the aforementioned book by Benjamín Franklin, this author based on figures that have studied the history of administrative science such as Claude S. George Jr., Prapid n. Khangwalla and Clarence H. Hearing outlines a chronology of cultures such as Egyptian, Babylon and Spanish that they have done in their own way and without conceiving it as such, an administrative audit, in addition to other people who developed the contemporary thinking of the current administration. 

Despite the naturalness with which the administrative audit is limited in an organization, we currently know that there is an already established methodology about what are the steps to achieve an audit.

Administrative Audit Methodology

 The methodology is established as a series of steps to be carried out to comply in an orderly and successful manner the process of an administrative audit. It is created in the words of Benjamín Franklin: “For the execution to be carried out in a scheduled and systematic way, criteria are unified and the depth with which the administrative analysis approaches will be reviewed and applied to guarantee the timely management and objective of theResults ”affirms that it also fulfills the function of facilitating the auditor with the facts, findings, evidence, transactions, situations, arguments and observations, that is, the identification of the necessary information. The steps of the methodology are generally: planning, instrumentation, examination, reports, and monitoring. 

Each of these steps are briefly described briefly. 

Planning 

It is the stipulation of objectives that require both goals planning, concrete actions to achieve the goals, so it requires preliminary investigation. This defines the administrative situation of the organization, review the technical and legal literature, work field reports. This process is necessary to reformulate the initial approach and delimit the objectives, strategies, actions and profile of future problems. Franklin emphasizes that to correctly perform this situation, the following aspects must be taken into account: 

• Determine specific needs identify the factors that require attention 
• Define action strategies hierarchizing priorities based on the purpose pursued 
• Describe the location, nature and extension of the factors 
• Specify the auditor’s profile 
• Estimate the time and resources necessary to meet the defined objective 

It can be concluded that without adequate planning it will be difficult to make a good audit, since all the strategies start from it, so this first step is the most important. 

Instrumentation

 The instrumentation is the second moment of an audit and is formed once they have established the collection techniques that are best estimated. Some of them are: the measuring instruments, the management of the work and evidence papers, as well as the established supervision. 

Test

It is to collect evidence and review them under a detailed review, we must divide or separate the component elements of the factors under review to know the nature, characteristics and origin of their behavior, without losing sight of the relationship, interdependence and interaction of the parties betweenYes and with all. 

Report 

The preparation of the report consists in capturing the findings and conclusions of the audit. It is sought to be a detailed report on the magnitude and frequency of the findings and that recommendations are attached with the evidence that supports the reason. In the report you must present with objectivity and clarity, accessibility to the information at the time required, it must also be of utility and quality and present in a logical way for them to be easy to apply. 

It seeks to contemplate every aspect that was audited: areas, systems, programs and audited projects;as well as the duration, reach resources and methods used. "The report consists of an invaluable factor because it makes it possible to know the real needs, and leaves open the alternative of its presentation prior to the owner of the organization to determine the achievements obtained …" 

Tracing 

This is the step that has to be better achieved, since if the audit met the objectives that were drawn and found the deficiencies together with the guidelines to avoid them, it is necessary to review periodically if the recommendations are being implemented so that it does not return toThe initial situation. Planning according to William P. Leonard and Víctor Rubio Ragazzoni. Next, this work seeks to identify the meeting and disagreements between the methodology established by William P. Leonard and Víctor Rubio Ragazzoni. In their definitions about the audit they both agree. The William P model. Leonard is a model focused on analyzing and proposing. 

The methodology proposed consists of four stages that he outlined in his book written in 1991 entitled: Evaluation of Methods and Administrative Efficiency. It affirms that the purpose of the administrative audit is to discover the deficiencies and improvement areas that could exist in any of the parties of the company to make the recommendations that allow to overcome these deficiencies. William defines the audit as: “a complete and constructive examination of the organizational structure of a governmental company, institution or department, or from any other entity and its control methods, means of operation and employment that occurs to its resourceshumans and materials.”Ragazzoni establishes in its practical guide of the administrative audit, written in 1955, that the function of the administrative audit consists of analyzing the activities carried out by an organization, to verify that they conform to the established objectives and policies, and verify therational use of technical, material and financial resources, as well as review the use of operational personnel and evaluate control measures. 

As it is possible to see the two agree that it is an evaluation of the practices, objectives and control methods of an administrative body for an improvement. William, like Ragazzoni gives a significant weight to the first step of any methodology that is planning, in his theory the plans and objectives are found as first moment, since although every organization has delimited their objectives sometimes these are notThey represent truthfully what is intended to be achieved or the plans to achieve it are not traced. That is why William emphasizes the need for the auditor to meet with managers to clarify in the first instance where he wants to arrive. 

The organizational structure is also part of the plans and objectives since it involves the review of how tasks are distributed in the organizational. This step seeks to understand employee responsibility according to their level in the organizational hierarchy and command line. This analysis also serves to ensure that the distribution is functional so that they can meet the goals to be achieved. William also suggests reviewing that the company’s guidelines are really applied. Consequently, he is obliged to know the government regulations so that the company does not fall into any infraction or a sanction. Then you must also understand the internal processes under which a company operates is essential to find the points in what there are opportunities to improve. The auditor must also understand the control methods. 

This step within its methodology is essential because it tells us about the need for every organization to have the parameters to measure the results achieved. Without these it is impossible to know the real scope of a production or sale;In the same way you must investigate operation wicks. This happened to you allow you to meet the auditor about the efficiency of information and coordination between the different departments to achieve better results. Human resource is an essential part of every organization and studying it must be one of its priorities. William states that studying it implies knowing how much staff is counted, as well as their workload and seeking that the tasks are well distributed to achieve a better workflow. 

Finally William tells us about the need to review the facilities and equipment to determine under what conditions are and how many years of life they have left or it is necessary to acquire more modern equipment. Ragazzoni contemplates as William all the previous aspects but more superficially. In the following fragment, it defines what the planning stage is.”It is the function where the sequential development of the activities aimed within the programs is defined, as well as the determination of the time required for the development of each of its stages."Ragazzoni talks about the considerations that must be taken at the time of planning. Which are: the particular characteristics of the company, purpose of the works and its development sequence (follow an order), estimate of times for the development of each work, select the suitable personnel, determination of the resources that will be used, thusas the material means, determination of the support that the social body will provide. 

It is possible to conclude that the Ragazzoni methodology although it seems easier is also personalized since it considers the particularity of each company and gives priority to the human resource, that is, the way they work and its development and especially if the staff is suitable. William recognizes it but until the end of planning. Another point that seems better to me in the Ragazzoni methodology is that it contemplates the times, which William does not develop, and that today we know that it is one of the most important aspects of any company 

conclusion 

We can conclude that planning is for these authors a process to collect as much information as possible and thus be able to elaborate the necessary audit actions, however Ragazzoni is more empathetic and with a more qualitative vision to the audit by giving the preponderant role to capital to capitalhuman. It is also a more modern thought when seeking time as necessary aspect to quantify the results. 

REFERENCES

• Franklin, f. Enrique Benjamín, Administrative Audit. Strategic Change Management, Second Edition, Pearson Education, Mexico, 2007 Administrative Audit, Inter -American University for Development, recovered from: https: // moodle2.UNID.Edu.mx/dts_cursos_mdl/execo/ad/aa/s03/aa03_lecture.PDF Victor M approach. Rubío Ragazzoni, Administrative Audit, Scribd https: // moodle2.UNID.Edu.mx/dts_cursos_mdl/execo/ad/aa/s03/aa03_lecture.PDF