Administrative audit. Why should I do it?

Next, we are going to tell you about the purposes and methodologies to be able to apply an administrative audit in your company and start with your action plans.

If you want to know more about the different types of audit that you can apply in your organization, visit our article “What type of audit is the right one for your company?”

But first… What is administration?

Administration is the process that coordinates all the workers activities, achieving the optimization and proper management of human, financial, material and technical resources.

Then we can consider an administrative audit as a comprehensive diagnosis of the structure of an organization, a company, institution or any other entity. Where control methods, means of operation and the use of human and material resources are evaluated.

The administrative audit must be carried out at all levels of the organization, regardless of its size, intentions or the sector that it belongs to. Through it, it can be evaluated if the administration of an organization meets the stipulated objectives. For this reason, it is very important to do it at least once a year.

Objectives of an administrative audit

The purpose of carrying out an administrative audit will always be to find the weaknesses in the different areas of an organization, in order to initiate action plans and thus, correct them.

Among its main objectives we can find:

• Optimize the used resources administration, through the investigation of threats or weaknesses;
• Diagnose the product or service performed by the organization, for customer satisfaction.
• Increase quality levels and competitiveness
• Identify the successes and administrative virtues in order to replicate them in similar situations;
• Analyze the functions of each sector of the company, so that they are not repeated in different areas;
• Propose new organizational schemes to solve the shortcomings found.

Types of administrative audits

Within this classification, there are two types of audits: Analytical and Functional.

Along with the progress of information systems, technology has progressed the need to evaluate and diagnose administrative information. Today, it is a fundamental requirement to have a human team or software that can carry out the evaluation of administrative audits in both of its branches:

1. Analytical administrative audit: It focuses on the quality of the processes used by the organization to operate and carry out its functions.
2. Functional administrative audit: It focuses on the capacity and quality of the different management positions. Both individually and collectively. Along with the proposals made within these charges.

With the application of both types of administrative audits, it is possible to detect which areas require more attention and prevent situations that generate additional expenses and inefficiencies in the processes.

Many companies choose to use software to perform this type of task due to its numerous benefits:

• Generation of automatic reports;
• Time saving;
• Teamwork;
• Elimination of paper.

Technologies like Full Audits give you all these advances without technical training or server configurations. If you want to discover more about the benefits of Full Audits to optimize your company’s audit and control processes, you can visit our website.

Methodology of an administrative audit

To carry out an administrative audit, four fundamental steps are applied, which we will describe below. 

1. Planning: the focus of the audit itself is determined.
2. Data collection: Data collection is carried out for later evaluation. In this step, time optimization is of great importance, apps such as Full Audits allow you to save up to 60% of it.

Unlike the traditional process, with the use of Full Audits, the process for the auditor ends here since the report, scoring, data consolidation, creation of action plans and communication is done automatically.

1. Examination: it is a practical stage of the investigation.
2. Report: The report automatically generated by Full Audits is divided into three parts. First, the relevant data, results obtained, trend graph and auditor’s signature appear. Then you can view the action plans that must be executed as a result of the improvement opportunities detected. And finally, you can see all the results with your media files. It only remains to export it to PDF and share the results with the rest of your team.

In conclusion, the result gained from an administrative audit is essential to detect points of improvement based on the performance of the company’s human and material resources.

Now that you know the methodology and the benefits of administrative audits in your organization, what are you waiting for to carry them out and start with your continuous improvement?