2# SESSION

Management Audit Literature Review: MANAGEMENT AUDIT OVERVIEW

Management Audit is a systematic audit of the activities. Programs and functions of an organization are aimed to initiate and report whether resources and funds are used in a more economical and efficient way, and if the purpose of the activities, programs and functions that have been planned can be reached by not against the laws and regulations. The report is then evaluated to generate recommendations for improvement. In addition, to improve previous performance, Management Audit also avoids the weakness in the future with finding any indications of weakness.

MANAGEMENT AUDIT PHASES

1. Prelimenary Survey Preliminary investigation aimed to obtain general information and background in a relatively short time on all aspects of the organization's programs or activities that are considered to examine the system in order to obtain sufficient knowledge or portrait of the inspection object.

2. Review and Testing of Management Control System This phase is intended to obtain evidence about the three elements of the tentative audit objective criteria of causes and effects by testing for corporate transactions relating to the management and control system to ensure that the evidence obtained from the company is competent if extended audit in a detailed examination. Criteria are standards that must be adhered to by every part of the enterprise, causes are actions that deviate from accepted standards and the effects are the result of actions that deviated from the applicable standard.

3. Detailed Examination At this stage, the auditor must gather evidence material and relevant competent enough to be able to determine what actions are performed management and employees of companies that are deviations of the objective criteria of the audit firm, and how the effects of these distortions and large the small effects that cause loss to the company.

4. Report Development The findings of the audit should be completed with conclusions and suggestions and should be reviewed by the audit manager before it is discussed with the auditee. Comment from auditee about what showed in the draft report should be obtained (as in writing).

AUDIT OBJECTIVES

1. To assess the performance of management and various functions within the company. 2. To assess whether the various rumber resources (human, machine, money, other assets) owned companies have been used efficiently and economically. 3. To assess the effectiveness of the company in achieving the objectives set by top management. 4. In order to provide recommendations to the top management to correct deficiencies found in the implementation of internal control systems, management control, and operational procedures perusajaan, in order to improve the efficiency, economy and effectiveness of the company's operations.

PERFORMANCE INDICATORS

Measuring performance in an organization is needed to motivate employees to achieve organizational goals and to comply with the standards of behavior that has been previously established to produce what we want. Internal performance auditor said to be good if the quality of the work of internal audit unit in accordance with the standards can be set, where the quality of the performance of the internal auditor can be seen in terms of effectiveness, efficiency, and economics. Standard internal performance auditor can be seen from:

1. Management of the internal audit activity 2. The nature of the job 3. planning assignment

4. implementation assignment 5. Communication assignment results

Internal performance auditor can be judged by itself and be judged by others, in this case is the boss. According to his own assessment includes how he judges himself about how it works, punctuality at work, and how he had a good relationship with the relevant parties, while the assessment of the other party can be more detailed assessment and necessary for a more objective assessment, more right on target, and perfect.

MANAGEMENT AUDIT PROGRAM

Management Audit Program is an adequate planning of the information and evidence gathered during each phase of the audit function with the proposed procedure to achieve the plan. Each phase of the Programme Management Audit to say specifically what the purpose of that phase, what should be done to achieve the stretcher, as well as what will be done with the results.

Audit Program for Preliminary Survey Almost most of the auditor must have a written program for the preliminary survey phase of the audit performance. The main objective of the survey was to obtain preliminary background and information of public works in the area of auditing for successful planning phase. In order to achieve this, the best thing for the auditor to avoid complications in the future is to write in detail what the survey phase of the background data to be obtained, which acquired it, and what to do after acquiring it.

Review and Testing Program for Management and Internal Control The evaluation of internal control needs to be done to assess the reliability of information that is accurate, to ensure the level of compliance with laws and regulations, and to prove the efficient and effective operation. Internal control will affect the level of competency of evidence to be considered by the auditor. Only through review and testing of internal controls, the auditor may establish measures that will be needed in the detailed audit program to finish the details.

MANAGEMENT AUDIT REPORT

Management audit report summarizes the results of the audit work that informs the weaknesses that are important to management and shows you how to fix these weaknesses. Management audit report has three functions, there are providing recommendations procedures and standards change, indicating that risky parts, presents an assessment of the quality systems and procedures.

3 Questions Related to Material Discussed: 1) How is the authority and role of auditors in implementing the recommendations? 2) What should be done by an auditor in determining the scope of the audit, in order to avoid errors in determining the audit program? 3) What information is obtained from the auditor's further audit conducted?

REFERENCES

Herbert, Leo. Auditing The Performance of Management. Lifetime Learning Publications. Belmont, California.

Agoes, Sukrisno. Auditing (Pemeriksaan Akuntan) oleh Kantor Akuntan Publik. Lembaga Penerbitan Fakultas Ekonomi. Jakarta.

http://kk.mercubuana.ac.id/files/32030-4-451040508699.doc

http://iweldolphin.blogspot.com/2012/11/management-audit.html

http://www.scribd.com/doc/61664315/Manajemen-Audit.