Essay on Strategic Audit: Progress From Specialized Perception to Overall Organization

Introduction

A strategic audit focuses on generating an extensive set of data and a chance to progress from an enclosed, specialized perception aimed at functional techniques to a more significant, and less clear evaluation of the overall organization (Wahl, 2015, p. 96). It developed a real-world orientation and aimed at developing skills associated with decision making classifying it as a tool that creates strategy. The completion of the first step of the strategic audit entailing finishing of the company profile sheet gives the company a quick and in-depth strategic view of the corporation. It provides the overall organization information, performance, structure and strategy information on a transparent and integrated sheet (Brawley, 2016, p. 18).

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Purpose of Strategic Audit

A strategic audit gets deigned to explain key concepts that impact vital behaviors. It is structured to present information on the current position of the organization before analyzing alternatives (Brawley, 2016, p. 15). A strategic audit is useful in developing a systematic ownership strategy (Wahl, 2015, p. 99) which is significant in providing a realistic alternative to complete firm contracts. The strategic audit offers the owner of a business a chance to evaluate their behaviors, understanding and management of knowledge and expressing his thoughts in the ownership strategy.

Advantages of a Continuous Strategic Audit

Continuous strategic audit limits the number of inefficiencies associated with contemporary auditing activities. It reduces mistakes correction, audit work delays, and time used in finalizing the reports. Continuous audit creates short audit cycles allowing the finance workers to emphasize other organization tasks (Kokemuller, n.d.). The external auditors can make the completion of the audit report increasing profits and reducing costs from auditing activities. Continuous audit creates customized reports for auditing firms' clients and internal use. It increases the auditing value surpassing the generic assessments generated from the contemporary auditing process (Kokemuller, n.d.). It creates a higher possibility of a thorough evaluation of specific financial data and accounts. The flexibility in the report creates a high likelihood for the company to obtain reports satisfying the needs of overseeing agencies and serving internal roles.

Source of the Effectiveness of a Strategic Audit

Properly conducted auditing process develops a useful audit report. The source of the effectiveness of a strategic audit gets obtained from excellent audit planning. Researching the audit area provides information on the business function and process (Brylow, 2018). The planning process requires maintaining open communication all through the process. Conducting a process walkthrough with the auditee. It identifies crucial organization aims, techniques used to meet objectives and policies that are applied. In mapping the organization risks, function or process helps in the identification of risks to attain the aims of the business and controls used to minimize the risks (Brylow, 2018). Data from previous fieldwork can be analyzed before the current fieldwork helping to identify anomalies helping to test the target and optimize sample sections.

Strategic Audit Provisions

The audit report provides a comparison of the current business state during the audit to how it would have appeared and operated if it had attained its goals (Lindblad, n.d.). It provides a continuous process of auditing with the implementation of alterations basing on the report. The auditing team reevaluates the performance of every sector of the company (Lindblad, n.d.). A strategic audit provides a strategic plan having long- and short-term goals giving the auditors a baseline of working. The strategic plan provided enables the auditors to perform business functions accessing every function and its influence on the outcome of the organization.

References

Brawley, D. E. (2016). A "Quick & Dirty" Strategic Audit. Journal of Learning in Higher Education, 12(2), 15-31.

Brylow, W. (2018, July 3). Five Elements of an Effective Audit Planning Process. Retrieved from https://misti.com/internal-audit-insights/five-elements-of-effective-audit-planning

Kokemuller, N. (n.d.). The Advantages of Continuous Auditing. Retrieved from https://smallbusiness.chron.com/advantages-continuous-auditing-39568.html

Lindblad, M. (n.d.). What Is the Importance of the Strategic Audit? Retrieved from https://smallbusiness.chron.com/importance-strategic-audit-13057.html

Wahl, M. F. (2015). Strategic Audit and Ownership Strategy. International Journal of Business and Social Research, 5(9), 93-100.