Organizational audit is the control of the mechanism and structure of organizational management on the basis of adopted standards, norms, laws and principles. It assumes controlling organizational structure (structure links and business processes), identifying compliance of the organizational structure to the scale and nature of business activities. Audit entails identifying goals, tasks, functions, cost and potential to develop the established arrangement. Audit aims at identifying organizational and financial risks carried within the structure, as well as financial losses that such risks may bring.
Audits of management organizational structure include definition of the organizational structure, description of the distribution of employees’ and departments’ powers and responsibilities, development of enterprise policy, provisions on unit operations, job descriptions, principles of planning, accounting, analysis and decision-making across all management categories (marketing, logistics, production, etc.). Analysis of various management arrangement options lets business or unit managers harmonize operations and decrease general costs of ensuring efficient business management. Organizational audit outcomes come in the form of report, process cards and questionnaires, allow business leaders have a complete, accurate and consistent information about the condition of the management system. These data will be used as a starting point to introduce changes and facilitate identifying main directions of improving the business. Analyzing root causes of discrepancies and lack of compliance within the organizational structure lets the managers achieve proper results during organizational transformations. Audit outcomes will also facilitate selecting the right management model for different management categories.