Perkuliahan ke 2

The Management Auditor :

1. Internal Auditor
-advantages : know more about the company
-disadvantages : less independent
2. External Auditor (consultant)
-advantages : more independent and have more expert
-disadvantages : expensive/high cost
3. Government Auditors
-advantages : better understand government regulations
-disadvantages : long bureaucratic process

Benefit from Management Audit :

1. Provide relevant and timely information for decision making
2. Assist management in evaluating records, reports and controls
3. Ensure compliance with established managerial policies, plans,
procedures and government regulatory requirements
4. Identify potential problem areas at an earlly stage to determine
preventive actions to be taken
5. Assessing the economy and efficiency of resource use, including
minimizing wastage
6. Assess the effectiveness in achieving the company’s goals and
objectives that have been set
7. Facilitate training for personnel in all phases of company operations

Some conditions that required management audit :

1. Sales continue to drop
2. Lower profit margin
3. There are areas that require efficiency or economy
4. Not achieving company goals
5. High employee turnover
6. Want to improve the condition of an area/division
7. There are allegations of irregularities or the report does not
match the actual conditions
MANAGEMENT AUDIT PHASE

1. Suggestion and introductions :

Obtain data on organizational goals, review the unit activity or function in
organization, review the type of control, the chart of organization and unit position
in organization.
2. Preliminary survey :
obtain the information about statistic and financial, planning and budget, and other
measurement and reporting system to monitor performance.
3. Preliminary review :
identify area activity, set the performance criteria, review skills and expertise
required. This phase is ends with formulate and design the audit program include
special technique that used
4. Detail review/test :
identify the areas of management concern. Complete data from different various
sources and apply testing techniques, include statistic and analytical analysis.
5. Developing and analyze audit findings :
doing analysis of conditions and identification the circumtances, review all evidence
to support the findings then discussed with management.
6. Reporting :
the success of management audit is highly dependent on the quality of audit report.
Management audit report is formal tool to provide information for top management
about the significant findings and corrective recommendations. The narrative form
report equipped with charts, tables, or graphs. Every findings equipped with
comment and corrective effort
7. Follow up after management audit :
the purpose of follow up review is to ensure the recommendations submitted in
audit report have been properly implemented. Follow up review is feedback for
auditor whether the implementation of recommendations is effective or fails

(Amin Wijaya Tunggal, Audit Manajemen Kontemporer)

1. Planning
2. Audit implementation
3. Reporting
4. Delivery the recommendations and review the follow up

(A. Arens)
Leo Herbert put forward the audit steps as follows :
Getting started :
1. Planning and programming the audit
2. Reviewing Management Audit Principles using real-life situation
3. Applying the principles, policies, and practices of program auditing
4. Understanding management control
Making the detailed examination :
1. Obtaining evidence in performance auditing
2. Understanding working papers
Using specialized techniques in auditing the performance of management
1. Obtaining audit evidence through statistical sampling
2. Obtaining evidence through interviews and questionnaires
3. Using the computer as an audit tool and auditing the tool itself
4. Using specialized analytical techniques-using experts and consultants
Reporting the results of the audit
1. Understanding the principles of reporting
2. Writing a clear, concise and objective report

THANK YOU