Management-oriented auditing

The detailed checking to detect errors and fraud is giving
way to user-friendly systems designed to do the same thing. Internal auditors
today rely on up-to-date systems, which they have tested, to guard against
improprieties.

They substitute their knowledge of risks, operating goals,
systems, and management drudgery of item-by-item checking. They have moved from
simple verifiers/attesters to the broad management-orientated internal auditing.

Attributes of management-orientated auditor. He is not an
internal adversary, but a ‘management confidante’ whose role is akin to an
“internal consultant’s”. He is not the dreaded internal sleuth but a management
ally. Even though his role might be likened to the ‘eyes and ears of
management’, this attribute need not be associated to a spy or a snooper.

Modern-day internal auditors do what the chief executive
officer, manager or supervisor of an organisation would do in appraising
operations if he (that is, the CEO/manager) himself had the time.

Management-orientated auditing fundamentals. To be an
effective modern-day management-orientated internal auditor, a person needs to
be aware of the following skills : (i) knowing the modern methods, (ii) the
people they deal with, (iii) the population or audit universe to cover, (iv) how
and when to communicate (entailing good interpersonal skills), (v) knowing the
professional audit standards for his guidelines, (vi) awareness of his audit
goals, vii) knowing the facts surrounding the things he is auditing, (viii)
being aware of the controls in those surroundings, (ix) the causes of deviations
in those surroundings, (x) what effects that could arise as a result of the
present situation and finally, (xi) being able to suggest improvements or
positive (not negative) corrections.