NATIONAL TECHNOLOGY OF MEXICO

TECHNOLOGICAL INSTITUTE OF OAXACA

Department of Economic – Administrative Sciences

Bachelor's Degree in Business Administration

Business Diagnosis and Evaluation: Case Study “Mezcal Benevá”

Revised:
Dr. Blasa Celerina Cruz Cabrera

Elaborated:
Velasco Hernandez Jesus Andres

Oaxaca de Juárez Oaxaca on November 5, 2018

Introduction
 The Administrative Audit seeks to control and compare the current state of the company and

how far it is from what it wants to be and what measures to adopt to achieve its goals or what

pertinent changes must be made to access a better level of performance. The Administrative

Audit is a technique that uses several specialized procedures and is based on the scientific method

for research. The research process involves systematically organized and standardized action, to

obtain a diagnosis at the lowest cost and with the greatest reliability.

The audit gives certainty to that natural or legal person about the form and state of the

business. Any activity requires steps to follow or procedures, just as a doctor must follow certain

steps, such as anesthetizing, checking vital signs, to proceed to operate, an auditor must follow

certain steps to achieve his objective. Sampling is of vital importance in an audit since depending

on the type of review, the number of tests to be performed will be

To do this, you must use techniques to minimize error, reduce cost and establish work

methods applied to the case study with maximum efficiency and resource management. The

starting point of the systematic and sequential audit process is the planning through which the

object of study is delimited, the activities are previously defined, the resources are determined

and the methodology to be used is projected, specifying the techniques and tools. to employ.

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 P.
Index
Introduction
Chapter I Generalities of the Administrative Audit
1.1 Background of the Administrative Audit 6
1.2 Definition of the Administrative Audit 8
1.3 Concepts of the Administrative Audit according to authors 9
1.4 Importance of the Administrative Audit 10
1.5 Objectives that make up an Administrative Audit 12
1.6 Scope and Field of Application within the Administrative Audit 14
1.6.1 Public Sector 15
1.6.2 Private Sector 16
1.6.3 Social Sector 17
1.7 External Audit and Internal Audit 18
1.7.1 External Audit 18
1.7.2 Internal Audit 19
1.7.3 Responsibility and Authority 20
1.8 Types of Audit 21
1.8.1 Administrative Audit 21
1.8.2 Operational Audit 23
1.8.3 Financial Audit 24
1.8.4 Comprehensive Audit 24
1.8.5 Government Audit 27
1.8.6 Other classifications of Audits 28
1.9 Profile of an Auditor 31
1.9.1 Skills and Abilities 33
1.9.2 Experience 34
1.9.3 Professional Responsibility 35
1.9.4 Professional Ethics 36
1.9.5 Responsibility for its Exercise 36

Chapter II Stages of the Audit Methodology

2.1 Methodology to make a diagnosis 47
2.2 Planning Stage 47
2.2.1 Factors to review 48
2.2.2 Preparation of the Audit Project 49
2.2.3 Preliminary Diagnosis 51
2.3 Instrumentation 52
2.3.1 Information collection techniques 52
2.3.2 Work Supervision 55
2.4 Exam 56

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 2.4.1 Multilevel Analysis 57
2.4.2 Formulation of the Administrative Diagnosis 58
2.5 Report 60
2.5.1 General Guidelines for Preparation 61
2.6 Types of reports 62
2.6.1 Unreserved Opinion 62
2.6.2 Qualified Opinion 63
2.6.3 Adverse Opinion 63
2.6.4 Abstention of Opinion 63
2.7 Presentation of the Report 64
2.8 Monitoring of the Audit 64
2.8.1 General Guidelines 65
2.8.2 Criteria for the Execution of the Follow-up Audit 67

Chapter III Generalities of the Company “Mezcal Beneva” and Application of the
Audit
3.1 Background of the company “Mezcal Beneva” 69
3.1.1 Distribution 70
3.1.2 Organizational culture 70
3.1.3 The problems of the mezcal sector in Oaxaca 71
3.1.4 Primary activities 72
3.1.5 Traditional process for the production of mezcal 76
3.1.6 Mezcal production process with technology 76
3.1.7 Logistics 77
3.1.8 Marketing 78
3.1.9 Company administration 79
3.1.10 Agave and mezcal production and marketing strategies in Oaxaca 79
3.2 Preparation of the work plan 83
3.2.1 Implementation of the work plan. 83
3.3 Implementation of the Questionnaire 84
3.3.1 Evaluation of the Questionnaire 88
General conclusion 89

Annexes
1. Organization chart 91
2. Vision 91
3. Mission 92
4. Product catalog 92

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 Chapter I Generalities of the Administrative
Audit

In the next chapter we will talk about what the administrative audit is, contemplating from

concepts given by different authors who give their point of view of what it means for each of

them, also knowing why the importance of carrying out an audit in a company both its objectives

that it pursues as well as the results that it wants to expect. Also mentioning one of the key points

of any audit which is who will carry it out, knowing their profile and the aspects that they must

exercise or acquire in order to be able to carry out the work of an audit in the most optimal way

possible.

Every book, every volume you see here, has a soul. The soul of the person who wrote it and of

those who read it, lived and dreamed with it. Every time a book changes hands, every time

someone lowers their eyes to the pages, their spirit grows and strengthens (The Shadow of the

Wind, Carlos Ruiz Zafón)

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1.1 Background of the administrative audit

Regarding and with the purpose of locating how it has been enriched over time, it is

convenient to review the contributions of the authors who have had the most significant impact

throughout the history of administration. In 1935, James O. McKinsey, within the American

Economic Association, laid the foundations for what he called "management audit", which, in his

words, consisted of "an evaluation of a company in all its aspects, in light of its present

environment." and probable future."

Later, in 1953, George R. Terry, in Principles of Management, points out that "The periodic

confrontation of the administrative planning, organization, execution and control of a company,

with what might be called the prototype of a successful operation, is the essential meaning of the

administrative audit. “Two years later, in 1955, Harold Koontz and Ciryl O'Donnell, also in their

Principles of Administration, proposed self-auditing as a total performance control technique,

which would be intended to "evaluate the position of the organization." company to determine

where it is, where it is going with its current programs, what its objectives should be, and whether

revised plans are needed to achieve these objectives."

After a year, in 1959, two relevant events occur that contribute to the evolution of

administrative auditing: Víctor Lazzaro publishes his book Systems and Procedures, in which he

presents the contribution of William P. Leonard with the name of administrative audit and, The

American Institute of Management, in the Manual of Excellence Managements integrates a

method to audit for-profit and non-profit companies, taking into account their function, structure,

growth, financial policies, operational efficiency and administrative evaluation.

In 1962, Roberto Macías Pineda, from the Higher School of Commerce and Administration of

the National Polytechnic Institute, within the doctoral program in administrative sciences, in the

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subject Theory of Administration, allocated a space to present an administrative audit work. At

the end of 1965, Edward F. Norbeck releases his book Administrative Audit, where he defines

the concept, content and instruments to apply the audit. Likewise, it specifies the differences

between the administrative audit and the financial audit, and develops the criteria for the

integration of the team of auditors in their different modalities.

Later, in 1971, two new contributions were generated: Agustín Reyes Ponce, in Personnel

Administration, dedicated a section to discuss the topic, offering a general vision of

administrative auditing, while William P. Leonard publishes Administrative Auditing: Evaluation

of Administrative Methods and Efficiency, where he incorporates the fundamental concepts and

programs for the execution of administrative auditing. Shortly after, in 1984, Robert J. Thierauf

presents Administrative Audit with Work Questionnaires, a work that introduces administrative

auditing and how to apply it on a basis of questions to evaluate functional areas, work

environment and information systems.

To conclude this first point of this chapter, the audit throughout history has had too many

changes from the way in which it is performed or practiced to the way in which each author has

to be able to express it and make it known, but it is always at the end. with a single purpose

which is to find everything in which you have to improve, locating your needs on which you

should focus, executing and carrying out plans or instrumentations that will serve as support to

meet your objectives.

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 1.2 Definition of the Administrative Audit

An administrative audit does not occur in a vacuum. It is part of a change strategy that requires

a clear decision at the highest level and a consensus of will aimed at ensuring that an organization

acquires the capacity to transform and grow efficiently. The starting point is the conviction that it

does not constitute an end in itself, but is linked to an entire process of institutional development,

so the contribution of different points of view and experiences, widespread awareness and the

exercise of self-criticism at all levels, are decisive for this tool to achieve the expected results.

The administrative audit has been, is and will be a fertile field for administration, a logical fact

since it is located at its very roots, it is the most versatile tool and consistent with the reality of an

organization. Carrying out an administrative audit forces us to investigate, to penetrate into the

deepest part of its essence to assimilate experiences and transform them into knowledge, to

understand where an organization is located, how it got there, where it started from and where it

wants to go.

The administrative audit is the evaluation and analysis of the organizational structure of a

company or institution in order to understand its operation and determine opportunities to

improve the quality and competitiveness of its goods or services. Through the administrative

audit, it is possible to evaluate whether the administration of a company meets the objectives

proposed in the organization, management and control plans according to its needs.

Administrative audits must be carried out in all companies or institutions, small, medium and

large, private or public, and in all their departments, in order to achieve the greatest effectiveness

of said organizational structures. (FRANKLIN F., 2007)

In short, when talking about an administrative audit we can cover aspects that, through a

process, usually establish guidelines for its implementation as a starting point for the process of

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carrying out a diagnosis of a company or organization that seeks to meet all the needs that its

clients need. satisfy, granting them both goods and services of the best quality and that meet all

their expectations.

1.3 Concepts of the Administrative Audit according to authors

AND. F. Norberk: It is a control technique that provides Management with a method of

assessing the effectiveness of operating procedures and internal controls. In essence, for Norbeck,

the objective of Management Auditing is not to outline audit programs for auditors, but to

provide management with the basis for understanding the general aspects of the discipline.

William P. Leonard: It is the comprehensive and constructive examination of the structure of a

company, an institution or any part of an organization, in terms of plans and objectives, its

methods and controls, its form of operation, its human and physical facilities. For Leonard,

management auditing aims to assist and complement management in certain areas that require

economies and improved practices.

J. Fernández Arena: It is the objective, methodical and complete review of the satisfaction of

the institutional objectives, based on the hierarchical levels of the company, in terms of its

structure and the individual participation of the members of the institution.

Anaya Sánchez: It is the technique that aims to review, supervise and evaluate the

administration of a company. The review of the company can be carried out by areas or as a

whole. The report is the result of the examination of the company where the recommendations

that warrant it will be given, in accordance with the elements of judgment that the auditor has.

J. Rodríguez Valencia: It is a detailed, methodical and complete examination carried out by an

administration professional on the management of a social organization. It consists of the

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application of various procedures, in order to evaluate the efficiency of their results in relation to

the set goals; the human, financial and material resources used; the organization, use and

coordination of said resources; the established methods and controls and their way of operating.

(Joaquín, 1986)

For Salvador Valdez, business diagnosis “is a powerful tool that directs, evaluates and

guarantees the life of a company or business, as a model that sets the standard for measuring

companies in order to ensure a long life time, through the application of a short-term method.

or

1.4 Importance of the Administrative Audit

The importance of the application of Administrative Audit and Business Diagnosis in SMEs is

the competitive growth of companies to stay in the market. Likewise, offer three types of

medications to the patient: Preventive, Curative and Diagnostic. The administrative audit is a tool

that allows us to discover deficiencies and areas of opportunity in an organization, since many

times daily work does not allow us to see that there are aspects subject to improvement.

Let's identify the reasons why it is important to do administrative audits, it is extremely

important to carry them out at least once a year, to discover what the flaws are, what can be

improved and what is being done well to strengthen it. In all organizations, regardless of their

status as private, public or social, continuous improvements are sought; as well as processes that

allow them to better overcome risks. The audit, by providing information about what

organizations are like, how they work and what they have, is reliable, truthful and timely.

We can say that the administrative audit is an analysis of administrative functions and their

interrelation; It goes beyond the accounting function to include administration, operations,

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functions, personnel, and to improve applied administration, by discovering the deficiencies that

limit the development of the social organism, through analysis in a rational manner and as far as

possible. objective of each and every one of the operational functions carried out in the

organization.

It is very likely that a single poorly executed operational function will keep the entire

organization at a lower level, therefore balanced performance must be sought in all functions, so

that some of them can be raised above the general level of operation. , apart from the fact that it

can be onerous not to improve the work of all the functions. An administrative audit can

completely cover a social organization or one of the components of its organization, as well as

some of the objectives that have been planned in advance.

The audit is not important in itself, but rather depending on the characteristics of the results

and the moment in which they are obtained, since the decision-making that marks the future of

the organization depends on them. In some cases, audits have led managers to make decisions,

even drastic ones, such as closing a plant, dispensing with the services of one or more people, or

making an investment.

Finally, we can note that another reason for the importance of the audit is its scope, a topic we

will talk about later, delving into the relevant aspects that constitute the company. It goes without

saying that the use of this tool has the intention of continuous improvement in addition to the

intention of achieving administrative efficiency. All these reasons only make it clearer why it is

so important to periodically carry out audits within organizations.

As a general conclusion, the objective is based mainly on the awareness of businessmen to be

able to implement it in their businesses, since it is well known that they perceive it as an

unnecessary expense, when in reality it is an investment to seek the competitiveness of their

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companies for a long time. term within the market. Subsequently, it is important to mention that

the information provided for the analysis of the current situation of the company is true, concrete

and relevant to have the necessary tools for diagnosis and find the most appropriate solutions.

And finally, the proposals derived from this evaluation have to be implemented without sparing

the necessary resources for a better result, as well as strict monitoring to verify the corrections

achieved and avoid recurrences. (redaccion, 2013)

1.5 Objectives that make up an Administrative Audit

The primary objective of the administrative audit is to discover deficiencies and irregularities

in some function of the social organization examined and to indicate their probable corrections.

In other words, the basic objective is to assist top management to achieve effective and efficient

management. The intent of the administrative audit is to examine and evaluate methods and

performance in all areas and assess the administrative landscape (the appropriateness of

objectives and plans, policies and procedures, organization, resources, accuracy and reliability of

controls, etc.) .

In general terms, the administrative audit provides us with a quantified evaluation of the

efficiency with which each body of the institution carries out its administrative functions and the

different stages of the administrative process. In other words, it presents a general administrative

overview of the audited institution and indicates those areas whose problems require greater

attention from the organization's management.

Due to its characteristics, the administrative audit constitutes a fundamental tool to promote

the growth of organizations, since it allows detecting in which areas a more in-depth study is

required, what actions can be taken to correct deficiencies, how to overcome obstacles, how to

print greater cohesion to the functioning of these areas and, above all, carry out a cause-effect

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analysis that consistently reconciles facts with ideas. By virtue of the above, it is necessary to

establish the framework to define consistent objectives whose coverage directs the tasks towards

specific results. Among the most outstanding criteria to achieve this we can mention:

to. Control Intended to guide efforts in the application of the audit and evaluate organizational

behavior in relation to pre-established standards.

b. Productivity They channel the audit actions to optimize the use of resources in accordance

with the administrative dynamics instituted by the organization.

c. Organization They determine that the course of the audit supports the definition of the

structure, competence, functions and processes through the effective management of the

delegation of authority and teamwork.

d. Service They represent the way in which the audit can verify that the organization is

immersed in a process that links it quantitatively and qualitatively with the expectations and

satisfaction of its clients.

and. Quality They provide that the audit tends to raise the levels of performance of the

organization in all its contents and areas, so that it produces highly competitive goods and

services.

F. Learning They allow the audit to become an institutional learning mechanism so that the

organization can assimilate its experiences and capitalize on them to turn them into opportunities

for improvement.

g. Decision-making They translate the implementation and results of the audit into a solid

instrument to support the organization's management process.

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 h. Interaction They enable intelligent management of the audit based on the strategy to relate

the organization with real and potential competitors, as well as with suppliers and customers.

Yo. Linking They make it easier for the audit to become a link between the organization and a

globalized context.

The objectives of the administrative audit vary depending on the specific results sought by the

organization, that is, if the organization wants to address a particular problem or deficiency, or if

it intends to make the entire company more efficient. By virtue of the above, it is necessary to

define the criteria that support the objectives of the administrative audit. The criteria that must be

considered as a basis for defining the audit objectives must always be focused on supporting the

members of the organization in the performance of their activities and guaranteeing the proper

administrative and operational functioning of the organization. These can be: control,

productivity, organization, service, quality or even to facilitate decision making.

1.6 Scope and Field of Application within the Administrative Audit

The administrative audit can range from an area or department to the entire company, in which

its entire administrative functioning will have to be discovered and analyzed. In addition, it

includes aspects of its organizational structure, hierarchical levels, interpersonal relationships,

operations, performance standards, technological development, among others. To clarify, we can

say that the scope defines the breadth and depth with which the administrative audit will be

applied, this means delimiting the number of areas or departments and the types of processes;

Some of its important aspects are:

a. Legal nature i. Technological development

b. Operating criteria j. Communication and information

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 c. Management style systems

d. Administrative process k. Performance level

e. Activity sector l. Treatment of clients (internal and

f. Scope of operation external)

g. Number of employees m. Around

h. Coordination relationships n. Products and/or services

o. Quality systems

Administrative auditing can be implemented in all types of organizations, whether public,

private or social. Due to their extension and complexity, it is necessary to understand how these

organizations are formed to respond to the demands for environmental services and products and,

above all, how they are articulated, which requires specifying their physiognomy, area of

influence and dimension. . Below is the information by specific sector:

1.6.1 Public Sector

In this sector, auditing is used depending on the legal status, powers, scope of operation, level

of authority, coordination relationship, work system and general lines of strategy for good

administration of any company. Based on these criteria, the scope of application focuses on the

representative institutions of the three powers which are executive, legislative and judicial and

can be classified as:

Executive power. a. Legislative power. Power of attorney.

a. Agencies of the a. Supreme Court of
b. Chamber of Deputies. Justice of the Nation.
Federal Executive
(Secretaries or b. Electoral Tribunal of
c. Senate Chamber. the Judicial Branch of
Ministries of State).
b. Parastatal entities. the Federation.
d. Commissions and/or c. Council of the Federal
c. Autonomous
organizations. Judicature.
special study groups.

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 d. State governments
(federal entities or
departments).
e. Presidential cabinet.
f. Commissions,
coordinations or
intersecretariat
councils.
g. Special mechanisms.

Effect: The result of applying the administrative audit in the public sector is to improve the

performance of the bodies and mechanisms that comprise it, considering their particular actions and the

interaction arising from the nature of their functions, based on the idea that the legislative branch

determines the legal order, the executive branch implements it and the judicial branch monitors its

compliance.

1.6.2 Private Sector

Consequently, once the action platform and the information base have been outlined to

conduct the implementation of an administrative audit. As far as this sector is concerned, the

audit is applied taking into account the legal entity, object, type of structure, coordination

elements, area of influence, commercial relationship and strategic thinking based on the

following characteristics:

a. Size of the company.

b. Type of industry.
c. Nature of its operations.
d. Strategic approach.
e. Regarding size, they are conventionally classified into:
f. Micro business, 2. Small, 3. Median and 4. Big.

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 1.6.3 Social Sector

Regarding the social part of this sector, what it will seek to represent within the administrative

audit will be applied to evaluate aspects such as standards in which individuals live and develop

currently, such as the promotion of the right to education, housing, work, health, economic

development, social protection and the well-being of the most unprotected sectors, in response to:

a. Type of organization and

b. Nature of its function
c. By type or figure, the organizations that make up the sector are:
d. Solidarity companies.
e. Assistance and social integration organizations.
f. Community organizations.
g. Attorney's Offices.
h. Emerging plans.
i. Permanent, special and emerging programs.
j. Reference networks.
k. Support systems.

Volunteers (Lucas, 2017)

1.7 External Audit and Internal Audit

1.7.1 External Audit

(Also called independent audit) It is the critical, systematic and detailed examination of an

information system of an economic unit, carried out by a Public Accountant and Auditor, without

employment ties with it, using specific techniques and with the aim of issuing an opinion.

independent on the way the accounting system operates, internal control and make suggestions

for its improvement. The opinion or independent opinion has significance for third parties, since

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it gives full validity to the information generated by the system since it is produced under the

figure of public faith, which obliges them to have full credibility in the information examined.

Internal management administrative and accounting statements, files and operations prepared

in advance by management, and other financial and legal files and documents of an organization

to issue an independent professional opinion, give public attestation to the reasonableness of the

information examined, validate before third parties the information produced by the company and

formulate recommendations and suggestions.

The objective of the external audit is to find out the reasonableness, integrity and authenticity

of the statements, files and documents and all the information produced by the organizational

systems, in order to accompany it with an independent opinion that authenticity and allows users

of such information make decisions relying on the auditor's statements. An audit must be carried

out by an independent person or firm of recognized professional capacity, this person or firm

must be able to offer an impartial and professionally expert opinion about the audit results. Under

any circumstances, a Certified Public Accountant is distinguished by a combination of complete

knowledge of accounting principles and procedures, accurate judgment, adequate professional

studies, and impartial and reasonable mental receptivity.

The advantages are that by not having any dependence on the company, the work of the

auditors is totally independent and free of any interference by the authorities of the audited

company. Also because the auditor belongs to the company, he almost always knows its

activities, operations and areas comprehensively; Therefore, its review can be more in-depth and

with greater knowledge of the activities, functions and problems of the institution. While its

disadvantages are that the auditor knows little about the company, his evaluation may be limited

to the information he can collect. Its veracity, scope and reliability may be limited, because there

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may be some interference by the institution's authorities in the way the report is evaluated and

issued.

1.7.2 Internal Audit

It is an independent evaluation function established within an organization to examine and

evaluate its activities as a service to the organization itself. It is a control whose functions are to

examine and evaluate the adequacy and efficiency of other controls. Objectives of internal

auditing are the promotion of effective control, at a reasonable cost, another objective is to

support the members of the organization in the performance of their activities. For this, the

internal audit provides analysis, evaluations, recommendations, advice and information regarding

the reviewed activities. The scope of the internal audit considers the examination and evaluation

of the adequacy and efficiency of the organization's internal control system and the quality of

execution in the performance of assigned responsibilities.

Review of the veracity and integrity of financial and operational information and the means

used to identify, measure, classify and report that information. Review the systems established to

ensure compliance with policies, plans, procedures and legal orders that may have a significant

impact on operations and reporting, and determine whether the organization is in compliance

with such systems. Review measures to safeguard assets and whether they are appropriate; verify

the existence of such assets. Evaluate the economic aspect and the efficiency with which

resources are being used. Review those operations or programs that tend to ensure that the results

are consistent with the established objectives and goals, and whether those operations or

programs are being carried out as planned.

1.7.3 Responsibility and Authority

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 The internal audit works under the policies established by administration and senior

management. The purpose, authority and responsibility of the internal audit group must be

defined in writing in a formal document, approved by management and accepted by senior

management. This document should clearly state the purposes of the internal audit group, specify

the unlimited scope of its work, and state that the auditors have no authority or responsibility

over the activities they audit.

It is the responsibility of internal audit to serve the organization in a manner consistent with

the Standards for the Professional Practice of Internal Auditing and with the standards of

professional conduct established in the Code. This responsibility includes coordinating internal

audit activities with others to ensure achievement of audit objectives and organizational

objectives.

Internal auditors must be independent of the activities they audit, in order to carry out their

work with freedom and objectivity, this is achieved through their position within the

organization. The organizational position of internal audit must be relevant to ensure a wide

margin of audit coverage, and to ensure effective actions on audit findings and recommendations.

“Objectivity requires that internal auditors have an attitude of mental independence and honest

confidence in the results of their work. Establishing procedures, designing, installing and

operating systems are not audit functions; Carrying out such activities presumes losing the

objectivity of the audit.

The internal audit has the advantage that because the auditor belongs to the company, he

almost always knows its activities, operations and areas comprehensively; Therefore, its review

may be more in-depth and with greater knowledge of the activities, functions and problems of the

institution and as a disadvantage, its veracity, scope and reliability may be limited, because there

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may be some interference by the authorities of the institution on how to evaluate and issue the

report.

1.8 Types of Audit

1.8.1 Administrative Audit

It must be concerned with verifying, evaluating and promoting compliance and adherence to

the correct functioning of the phases or elements of the administrative process and what affects

them; complementing its action with the evaluation of the quality of the administration as a

whole. Its objective is: to evaluate the quality of the administration as a whole. Without a doubt,

one of the audits that has lent itself the most to controversy and divergence of opinions is the

administrative audit. The reason for this may be caused fundamentally and mainly by an excess

of professional zeal among those who practice it: public accountants and administration graduates

(both in business and in public administration).

The discussion basically focuses on a mutual and apparent “invasion of territories” between

the scope of the operational audit and that of the administrative audit. The operational auditor

(public accountant) defends that the administrative auditor (graduate in administration) does not

have to cover in his review the operational aspects that are his responsibility. The administrative

auditor, for his part, does not agree that the operational auditor includes the administrative aspect

in his review. And there is much reason for this on both sides.

These types of situations should not occur in the professional field, so it is necessary to

establish a distinction of activities: Human, natural and economic resources are combined to

create an entity with a specific purpose. This entity is forced and necessarily requires establishing

administrative bases (factors or elements of the administrative process) that will help it begin to

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operate. With this administrative platform you begin to work; that is, to operate or generate

operations. These operations are recorded quantitatively in the accounting.

Well, since the cycle is perfectly identifiable in the process that composes it, it is appropriate,

then, to identify each phase of that cycle with the type of review to which it is susceptible; and

thus it follows that for the phase: 1) it corresponds, or falls, within the scope of the administrative

audit, as simple as that, without “invading” the following phase; 2) which corresponds to the

operational audit; and finally, 3) to the audit of financial statements, whether performed

externally or internally.

1.8.2 Operational Audit

It consists of giving effect to one of the objectives of internal control: the promotion of

operating efficiency, complemented by the evaluation of the quality of the operation, and is

supported by four basic considerations that will illustrate more clearly what should be understood

by this new specialty of the public accountant, and new variant in the practice of auditing in

general:

First. Operational auditing is an activity whose fundamental purpose is to provide a better

service to the administration by providing comments and recommendations that tend to improve

the efficiency and effectiveness of an entity's operations. Second. Not only should the operation

itself be reviewed, it must be extended to the function of that operation. For example, if the

billing operation is reviewed, it begins, in fact, in the shipping department (thus the shipping

operation has already been entered) and concludes when the invoice is sent for collection (at this

time the auditor must make sure that is actually received, and has automatically reached the credit

and collections operation).

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 Third: For a good execution of this technique, it is necessary to enter other disciplines such as,

for example: systems analysis, industrial engineering (to review costs and production), marketing

(to review sales), industrial relations (to review management). of human resources), etc. Fourth:

A clear definition of objectives is required; as well as having elements to compare what is being

done against those objectives with the purpose of determining deviations, analyzing and

evaluating them in order to take corrective measures according to the circumstances.

The operational auditor provides the experience and how to meet these work needs by

combining his action with those who know the exact nature of the activities of the relative

operation. To provide this help and achieve maximum benefits, formulas must be found to

manage these operations in such a way that they produce the best results or, in other words,

optimally achieve the established objectives. In this way, knowledge in control aspects becomes

for the operational auditor the access door to the different operational areas, and will be the basis

of his contribution to each manager responsible for those areas.

1.8.3 Financial Audit

The total or partial examination of financial, operational and administrative information, as

well as the means used to identify, measure, classify and report that information. Who has

reliable, truthful, timely, complete information; acquires power. Power to do, to change things

and situations; to make better and well-supported decisions. An administrator will not achieve the

objectives, goals and mission of his organization if he does not have at his disposal the basic and

indispensable information elements that help him and support his decisions. From this arises the

vital importance of the financial audit as an element of administration that helps and contributes

to obtaining and providing accounting-financial, operational and administrative information, a

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basis for knowing the progress and evolution of the organization as a point of reference for guide

your destiny.

1.8.4 Comprehensive Audit

Review of the administrative, operational and accounting-financial aspects of the entity

subject to review in the same audit assignment. What is intended with the comprehensive audit is

that the auditor, based on the knowledge acquired in the other types of audit, applies a

comprehensive approach in his review (review of administrative, operational and financial

aspects) with only one interest: that the The results of its management are more ambitious for the

benefit of the entity to which it provides its services.

That a comprehensive audit approach is predominantly applied to audit professionals who

depend, professionally speaking, on the organization where they will practice it. The auditor of

financial statements (external public accountant) is exclusive in this context because the objective

of his intervention is clear and defined: to issue an opinion; and must not deviate from it or

intervene in other activities or reviews for which it was not hired.

The bases to support the exercise of the comprehensive audit rest on the following

considerations and criteria:

First: Internal control includes the organizational plan and all the methods and procedures that

are adopted in a coordinated manner in an entity to safeguard its assets, verify the reasonableness

and reliability of its financial information, promote operational efficiency and promote adherence

to the policies prescribed by the administration. From this definition, four objectives of internal

control are determined, which are related to each type of audit and are the following:

a. Objective 1: Obtaining true and reliable financial information: Financial Audit.

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 b. Objective 2: Promotion of efficiency in the operation of the entity: Operational Audit.

c. Objective 3: That the execution of operations adhere to the policies prescribed by the

d. Administration of the entity: Element for the Administrative Audit.

e. Objective 4: Protection of the entity's assets: Result of compliance with the other three

objectives.

Second: There are certain bases of study, analysis and knowledge that the internal auditor

must have of the entity to be audited; That is, you must follow the same path to identify with the

entity, as well as to know the function subject to audit and the ideal conditions (administrative,

operational and financial) that should prevail and that serve as a basis for making comparisons

and reaching conclusions.

Third: There is no perfectly defined line that indicates in an internal audit review where the

administrative, operational and financial audit begins and ends. As an example: the review of

procedures (the first problem encountered is that there will be those who call them operating

procedures and others will say that they are administrative); A procedure (as an integral part of a

system), due to its logic of action, is operational, but it is also framed within administrative

provisions and policies and obviously by elementary asset protection measures (one of them, the

most important, is that are registered in the accounting).

Fourth: The results of an entity's operations must be reported in the financial statements. One

of the review phases of the financial audit involves the review of “transactions” or “operations”

(those that generate income or costs and expenses). But, to “operate” there must have been

policies or administrative provisions that regulated these operations.

In summary, to audit operating results (recorded in financial statements), the operations that

gave effect to them must be reviewed, and the administrative provisions based on which they

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were operated. To review operational aspects, one must resort to the same administrative

provisions that govern them and ensure that the result of these operations is correctly accounted

for.

Fifth: An unfortunately common problem among internal auditors (whether they are

administrative, operational or financial) is that they carry out their work to satisfy themselves and

their techniques are aimed at applying them based on their own training and professional

significance. When an authority orders an audit from its internal audit group, the least important

thing is what it is called; since what you want to know is what is happening in a certain area of

your organization and the more comprehensive or complete the auditor's review approach, the

better; Likewise, the authority will not be interested in knowing whether administrative,

operational or financial audit approaches were applied, since it will only want, simply and

simply: Results.

The comprehensive audit must have a primary focus with a review of complementary aspects;

for example: operational audit of the accounts receivable function, complementary covering the

financial-accounting and administrative aspects of that same function. The comprehensive audit

infers the philosophy of greater service and quality, which must prevail in an auditor who

depends internally on an entity.

1.8.5 Government Audit

Review of financial, operational and administrative aspects in public agencies and entities, as

well as the results of programs under their responsibility and compliance with legal provisions

that frame their responsibility, functions and activities. The government audit was born and has

developed as another need to monitor the exercise of public activity through control bodies

expressly and formally established for this purpose. It is exercised in two fundamental aspects:

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 1) through audit or control groups (internal) integrated into the organization to be monitored or

controlled, regulated by a supreme control body, and

2) directly by this control body, which is created and empowered by the corresponding

legislative bodies to fulfill this function.

The technical aspect of the government audit exercise does not differ greatly from the

concepts and criteria of the various types of audits; but the great difference of this audit in

relation to the others (except the tax audit), is that it is carried out under the protection, respect

and adherence to the legal provisions or legal framework applicable to public entities susceptible

to being monitored by this means and to the investiture that this same framework grants and

empowers the control and surveillance bodies to exercise their function.

1.8.6 Other classifications of Audits

Tax Audit: It is a method that is used to inspect both companies and individuals, that is, all

those subjects who are taxpayers and have tax obligations towards the Public Administration or

the State. They are made to the accounting records and operations of a company. It is the audit

carried out by auditors in relation to responsibility and compliance with Tax Laws.

Environmental Audit: It is a systematic method of evaluating an activity, work or project to

determine its project in the environment and enforce environmental legislation in the information

on the execution of the activities and works subject to the audit. It is the evaluation made of the

quality of the air, atmosphere, environment, waters, rivers, lakes and oceans, as well as the

conservation of flora and fauna.

Systems Audit: A formal process executed by specialists in the audit and IT areas; It is aimed

at verifying and ensuring the policies and procedures established for the proper management and

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use of information technology in the organization are carried out in a timely and efficient manner.

The set of actions carried out by specialized personnel in the audit and IT areas to continuously

ensure that all IT resources operate in an environment of efficient security and control, with the

purpose of providing senior management or levels executives the certainty that the information

that passes through the area is handled with the basic concepts of integrity, completeness,

accuracy, reliability, etc.

Social Audit: It is related to the process of investigation and evaluation of the social

responsibility of the organization towards groups of people who have a relationship with it, that

is, clients, employees, owners, suppliers and the community in general in relation to health,

education and well-being in general. Your approach can be in terms of evaluating:

1. The social performance of the organization to develop indicators on quality of life.

2. The interrelationships of the organization

3. The responsibility or irresponsibility of the organization for social requirements

Human Resources Audit: It is the examination carried out on the personnel area, to evaluate its

efficiency and effectiveness in the management of personnel and the controls that are exercised

with the files, attendance and punctuality, payrolls, social care policies and promotions, etc.

Forensic Audit: It is the use of criminal investigation techniques, integrated with accounting,

legal-procedural knowledge, and financial and business skills, to express information and

opinions, as evidence in court. The resulting analysis, in addition to being able to be used in

court, can be used to resolve disputes of various kinds, without reaching jurisdiction. “The

Forensic Audit is currently recognized internationally as a set of effective techniques for the

prevention and identification of irregular acts of fraud and corruption.” (Pablo Fudim, 1995)

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 Compliance Audit: It is carried out by verifying whether or not the current legal regulations

are followed, understood as those external to the entity such as laws, decrees, regulations and

internal to the statute or social contract, such as compliance with goals and guidelines. of the

management. The framework for violations of local provisions is usually restricted due to the

impossibility of verifying the absence of violations of minor regulations.

Preliminary Audit: It is the audit that is carried out within the normal year of operations every

three or four months, in order to advance the work of the final audit. This audit allows us to more

closely examine the different areas of the financial statements. It is useful, since some audit tests,

such as the confirmation of balances or circulation of the areas of accounts receivable, short-term

liabilities and long-term liabilities, can be done in a timely manner and their results will be

available for the final audit.

Final Audit: It is the review in which the balances of the preliminary audit and those of the

closing of the year are connected, verifying those items that have had significant variations

during the period.

Management Audit: Its objective is to evaluate the effectiveness of the entity's management in

relation to the established objectives. It has also been noted that it is the examination carried out

by an external and independent professional, with the purpose of evaluating the effectiveness of

management in relation to the general objectives, its efficiency as an organization and its

performance and positioning from a competitive point of view.

Medical Audit: The Medical Audit is the process by which the different types of care, their

processes, protocols, relevance and medical expenses are monitored and controlled, using the

procedures corresponding to each form of audit, with the purpose of improving the quality of the

medical practice offered to patients. (QUEDNOW, 2016)

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 1.9 Profile of an Auditor

The characteristics of an auditor constitute one of the most important issues in the decision

process of applying an administrative audit, since it is the responsibility of conceptualizing it,

executing it and achieving the results necessary to improve the performance of the organization.

who has opted for this resource. The quality and level of execution of the audit depend largely on

the professionalism and sensitivity of the auditor and his understanding of the activities he must

review, elements that imply the combination of the knowledge, skills, abilities and experience

necessary to carry out a job. careful and competent.

In a complementary manner to professional, theoretical and/or practical training, the auditor

must have other types of determining qualities in their activity, referring to personal resources

resulting from their development and intrinsic gifts of their character. The expression of these

attributes may vary according to the way of being and the duty of each particular case, but it is

advisable that whoever assumes the task of fulfilling the function of auditor must meet certain

requirements, namely:

Academic training To carry out an administrative audit, technical level studies, bachelor's or

postgraduate studies in Administration, Computer Science, Communication, Political Sciences,

Public Administration, Industrial Relations, Industrial Engineering, Psychology, Pedagogy,

Systems Engineering, Accounting, Law, International Relations are required. o Graphic design.

Other specialties such as Actuary, Mathematics, Engineering, Architecture, etc. They can be

considered as long as those who exercise them have received, in advance, preparation that allows

them to intervene in the audit, as well as specific training in the development of

academic/professional exchange projects with higher education institutions in the country or in

the country. foreign.

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 Complementary training The exercise of auditing implies a high degree of instruction in the

subject, achieved throughout a professional life through active participation in training,

development and updating events, such as seminars, congresses, panels, meetings, courses ,

workshops, forums or conferences.

Empirical training This requirement involves the knowledge resulting from the

implementation of administrative audits or improvement initiatives in different institutions even

without having a formal academic degree. Among the ideal knowledge to assist in the preparation

and execution of the audit.

1.9.1 Skills and Abilities

In a complementary manner to professional, theoretical and/or practical training, the auditor

must have other types of determining qualities in their activity, referring to personal resources

resulting from their development and intrinsic gifts of their character. The expression of these

attributes may vary according to the way of being and the duty of each particular case, but it is

advisable that whoever assumes the task of fulfilling the auditor's function possesses the

following characteristics:

Operative administration. Decision theory. Evaluation and control of

projects.
1. Process administration. 1. Corporate finance. 1. Positive attitude.
2. Change management. 2. Business intelligence. 2. Analysis capacity.
3. Knowledge management. 3. Emotional intelligence. 3. Bargaining power.
4. Customer service 4. Logistics. 4. Observation capacity.
administration. 5. Management of groups 5. Clarity in oral and
5. Strategic management. and teams. written
6. Administration by values. 6. Strategic marketing. communication.
7. Administration by 7. Organization and 6. Ethical behavior.
competencies. methods. 7. Concentration.
8. Benchmarking. • 8. Outplacement. 8. Awareness of one's
International Trade. 9. Strategic outsourcing. own values and those

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 9. Quality (statistical of one's environment.
control, total control, 9. Creativity.
administration and
continuous improvement
of the service). •
Organizational behavior.

1.9.2 Experience

One of the fundamental elements that must be highlighted among the characteristics of the

auditor is that related to his personal experience, since the professional care and diligence he

uses to determine the depth of his observations largely depends on it. Due to the nature of the

function performed, there are several fields that must be mastered:

to. Knowledge of the substantive areas of the organization Mastery of this field implies the

experience provided by permanent contact with initiatives or programs oriented towards the

production of specific results for the organization in accordance with its object and/or essential

attributions, strategy and competencies. central

b. Knowledge of the adjective areas of the organization. Competence in this area is derived

from experience in the constant implementation of administrative decisions to promptly use

human, material, financial and technological resources to support the substantive areas or

projects of the organization. the organization.

c. Knowledge of previous efforts This requirement implies understanding the process of

applying an audit, a product of previous experiences, which may have been acquired: • In the

organization under study Significantly favorable condition because it opens the possibility of

capitalizing on the experience acquired in the execution of the administrative audit. In other

institutions Factor that allows establishing a frame of reference based on the experience

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provided by knowledge of similar tasks carried out in other organizations, industries and sectors.

d. Knowledge of practical cases It is the perception of the nature, scope and conditions of the

techniques used to audit an organization, derived from the training, education or simulation

obtained in the work or study centers.

and. Knowledge derived from the implementation of organizational studies of another nature.

It implies the appreciation of the necessary requirements to implement an audit based on the

practice achieved in participating in other types of administrative analysis or diagnoses.

1.9.3 Professional Responsibility

The auditor must carry out his work using all his capacity, intelligence and judgment to

determine the scope, strategy and techniques to be applied in the administrative audit, as well as

evaluate the results and present the corresponding reports. To this end, you must take special

care to: • Preserve your mental independence. • Carry out your work based on knowledge and

professional ability. • Comply with the standards or criteria indicated. • Train continuously. It is

also necessary that it remain free of impediments that reduce the credibility of its judgments,

because at all times it must preserve its autonomy and impartiality. This attitude of

independence will give the necessary value and consistency to your participation.

1.9.4 Professional Ethics

One of the most relevant aspects of professional development, which is sometimes

considered multidimensional, is that related to ethics, perhaps because it is considered intrinsic

to behavior and work relationships. However, it is decisive for the individual and his

environment, since the clarity and transparency of the actions that in one way or another

translate into facts depend on it. Ethics, understood as the set of rules that order and give

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meaning to the values and principles of conduct of a person, such as commitment, honesty,

loyalty, openness, integrity, respect for others and sense of responsibility, constitutes one of the

pillars of the standards of action of any organization, regardless of its activity and environment.

From an organizational point of view, ethics can be defined as the set of moral principles and

norms that guide behavior in the business world. These principles and standards are part of the

codes of ethics or conduct that professional associations and institutions prepare, to which you

have access during the period of academic training and, subsequently, throughout your

professional life.

1.9.5 Responsibility for its Exercise

In the first case, it is up to the owner to designate the personnel of his own organization to

integrate the auditor or team that will be in charge of carrying out the audit. The internal auditor

As part of the organization, the internal auditor is selected by the management body based on

his knowledge of the mission, objectives, functions, clients and environment, taking into

account his knowledge, abilities, skills, experience and thinking structure. .

It also plays an important role to be considered reliable, loyal and capable of responding to

challenges, but, above all, to share the vision of the organization, that is, to dominate the field of

work with an institutional sense, a characteristic highly appreciated by the high direction. The

role of the internal auditor can be considered viable and relevant, but, as in any study process

that involves evaluation and change, it has to be assessed in light of the consequences that their

intervention entails for the organization.

In the second case, the organization must analyze, in accordance with the work conditions,

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the hiring of external auditors. The external auditor as an independent professional, his

participation in an administrative audit is very valuable, since it is accepted that he has an

objective vision of the facts, which increases and improves the expectations of achieving the

expected results in the estimated circumstances and times.

The work of an external auditor, in short, allows opening a range of complementary options

to those of an internal auditor, by virtue of having knowledge and experience in the matter, in

addition to having been trained to fulfill this function in a manner specific. It should be noted

that, due to the nature of their work, this professional is obliged to keep their knowledge

updated, which implies that they must be aware of all types of advances in administrative

analysis techniques and alternatives to face problems and propose solutions with speed and

efficiency.

In the third case, you can choose to formalize external support, backed by auditors from the

organization itself to form a single work team. Combined team When the organization makes

the decision to undertake an administrative audit, it has to precisely assess the results it expects

to obtain, the magnitude of the tasks to be carried out, the commitments that are made and the

follow-up that has to be carried out.

In conclusion, the role of the auditor in the application of the administrative audit is vital,

because the burden of conceptualizing it, executing it and obtaining the expected results falls on

him. Their profile, in terms of knowledge, skills and abilities, experience, professional and

social responsibility and, especially, their structure of thought and ethics, are the pillars on

which the administrative audit is based. In the implementation of an administrative audit it is

essential, since the level of knowledge, experience, abilities, skills, professional responsibility,

ethics, social responsibility and thought structure that supports your work are essential to

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achieve the expected results.

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 Methodology to carry out an audit

The administrative audit methodology has the purpose of serving as a framework for action so

that the actions in their different execution phases are conducted in a programmed and systematic

manner, criteria are unified and the depth with which the audit approaches will be reviewed and

applied is delimited. administrative analysis to guarantee the timely and objective management of

results for the organization. Likewise, it also fulfills the function of facilitating the auditor to

identify and organize the information corresponding to the record of facts, findings, evidence,

transactions, situations, arguments and observations for subsequent examination, reporting and

monitoring.

“You don't have to be great to start, but you have to start to be great.”- Zig Ziglar

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 The methodology can be used in a logical and accessible manner, which is why it can be

divided into different stages, in which each one provides criteria and guidelines that can be

observed so that the auditor can use this information and carry out the implementation. of

suggestions and/or strategies that seek to achieve the objectives set in order to find improvements

and future benefits for the company. In accordance with what has been explained so far, the

stages that make up the methodology are:

Planning : refers to the general guidelines that regulate the application of the administrative

audit to guarantee that the coverage of priority factors, sources of information, preliminary

investigation, audit project and preliminary diagnosis is sufficient, pertinent and relevant. At this

stage, the purpose of the administrative audit is to establish the actions that must be developed to

implement the audit in a sequential and orderly manner, taking into account the conditions that

must prevail to achieve the established objectives in a timely manner. As a first measure, it is

necessary to determine the factors that are considered fundamental for the study of the

organization based on two aspects: the administrative process and the specific elements that are

part of its operation.

In the first case, the stages of the administrative process are incorporated and the components

that underpin it are defined, which allow a logical analysis of the organization to be carried out,

since they sequence and relate all its components in a natural and congruent manner. In the

second case, a list of the specific elements that complement the administrative process is

included. Such specific elements are associated with fundamental attributes that frame their final

function, allowing their particular contribution to the process as a whole and to the functioning of

the organization to be determined.

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 Instrumentation: At this stage it is necessary to select and apply the collection techniques

that are considered most viable according to the circumstances of the audit, the selection of

measurement instruments that will be used, the management of work papers and evidence, as

well as as the supervision necessary to maintain effective coordination. The task of collecting

information is the recording of all types of findings and evidence that make its objective

examination possible, since otherwise errors of interpretation may be incurred that cause delays

or force the information to be recaptured, the audit rescheduled, or, If applicable, suspend it.

Likewise, a discrimination criterion must be applied, always based on the objective of the audit,

and continually review and evaluate it to maintain a uniform line of action.

Examination: Once the instrumentation has been put in place after having selected and

applied the collection techniques, determined the measuring instruments, begun the preparation

of the working papers and recorded the evidence under strict supervision, it must be carried out.

carry out the examination, which consists of dividing or separating the component elements of

the factors under review to know the nature, characteristics and origin of their behavior, without

losing sight of the relationship, interdependence and interaction of the parts with each other and

with the whole. , and of these with their context. Its purpose is to apply the appropriate analysis

techniques to achieve the proposed purposes with the opportunity, extension and depth required

by the universe subject to examination and the specific circumstances of the work in order to

gather the optimal decision elements.

Report: At the end of the examination of the organization, in accordance with the

corresponding procedure, and once the organizational and quantitative analysis approaches have

been selected and the administrative diagnosis formulated, it is necessary to prepare a report, in

which the results are recorded. of the audit and clearly identify the area, system, program, project,

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etc. audited, the object of the review, the duration, scope, resources and methods used. Since this

document indicates the findings as well as the conclusions and recommendations of the audit, it is

essential that it provides sufficient information regarding the magnitude of the findings and the

frequency with which they occur, in relation to the number of cases or transactions reviewed

based on the operations carried out by the organization. Likewise, it is important that both the

findings and recommendations are supported by competent and relevant evidence, properly

documented in the auditor's working papers.

The results, conclusions and recommendations that arise from them must meet attributes such

as: • Objectivity Impartial view of the facts. • Opportunity Availability of information in time and

place. • Clarity Easy understanding of the content. • Utility Benefit that can be obtained from the

information. • Quality Adherence to quality management standards and elements of the quality

management system. • Logic Sequence in accordance with the object and established priorities.

The report constitutes an invaluable factor because it makes it possible to know whether the

instruments and criteria applied contemplated the real needs, and leaves open the alternative of its

prior presentation to the head of the organization to determine the achievements obtained,

particularly when evidentiary or supporting elements are required. judgment that were not

captured in the application of the audit. Likewise, it allows establishing the necessary conditions

for its presentation and instrumentation. In the event of a significant modification, derived from

relevant evidence, the report will have to be adjusted.

Follow-up: To conclude and after selecting and presenting the alternative type of report

consistent with the defined priorities and having verified the operational aspects and general

guidelines to prepare the implementation proposal, it is advisable to focus on follow-up. At this

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stage, the observations that occur as a result of the audit must be subject to strict monitoring,

since they are not only aimed at correcting the detected failures, but also at preventing their

recurrence.

In this sense, monitoring is not limited to determining observations or deficiencies, but rather

to providing elements of growth for the organization, which makes possible:

• Verify that the actions proposed as a result of the observations are put into practice within

the terms and dates established jointly with those responsible for the area, function, process,

program, team, project or resource reviewed in order to achieve the expected results. • Facilitate

decision making for the head of the organization. • Verify the actions that were carried out to

implement the recommendations.

Its objective will be to establish general guidelines, specific actions and criteria for the

execution of follow-up audits to guarantee that the observations made by the auditor are attended

to and implemented in a timely manner. Likewise, to examine the degree of progress in the

adoption of the recommendations and establish the basis for implementing a follow-up audit, the

auditor must verify how they behave and be able to implement the recommendations and

observations that are not carried out in accordance with the If the statements contained in the

report are partially or poorly executed, the application of a follow-up audit is necessary.

(FRANKLIN F., 2007)

Illustration 1 of the stages of the Administrative Audit Methodology

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 Recovered from:

Cruz, N. P. (1 de septiembre de 2013). auditoria y sistemas de calidad. Obtenido de metodologia de la auditoria administrativa:

http://lasalleauditoriaysistemasdecalidad.blogspot.com
Based on the situation described, I can conclude that to carry out an administrative audit it will

be necessary to have a methodological framework which is integrated and guided by actions in

different stages. Planning, instrumentation, examination, reporting and monitoring. Each of them

made up of a series of components that are essential to meet their objectives. In order to find the

right path for the guidance of actions that an administrative audit can provide to an organization.

Likewise, having the opportunity to evaluate performance in an objective way and strengthen

certain aspects to create growth conditions that can be constant and permanent.

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 Chapter II Stages of the Audit Methodology
This chapter II will cover the different stages included in a Methodology for carrying out an

Audit, breaking down the content from planning to monitoring that must be followed in order to

carry out this process in which it will seek to find within any organization but in this work

emphasizing more to the company Mezcal Beneva possible problems that they would have when

carrying out a diagnosis to find the current state of their situation, looking for the fastest and most

concrete ways to guarantee the most suitable conditions to continue providing their service to all

your clients.

“We must stop trying to understand what needs to be done by looking at what we have done.

We have to start looking into our hearts and see what we truly believe is possible. This is literally

what it means to have a vision. The source of that energy comes from the deep conviction that

something is feasible.” Peter Seng

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 2.1 Methodology to make a diagnosis

The administrative audit methodology has the purpose of serving as a framework for action so

that the actions in their different execution phases are conducted in a programmed and systematic

manner, criteria are unified and the depth with which the audit approaches will be reviewed and

applied is delimited. administrative analysis to guarantee the timely and objective management of

the results. It also serves the function of facilitating the auditor in identifying and organizing the

information corresponding to the record of facts, findings, evidence, transactions, situations,

arguments and observations for subsequent examination, reporting and monitoring. To use it in a

logical and accessible way, it has been divided into stages, in each of which the criteria and

guidelines that must be observed are provided so that the initiatives correspond with the plans.

The stages that make up the methodology are:

a) Planning
b) Instrumentation
c) Exam
d) Report
e) Follow-up

2.2 Planning Stage

Planning refers to the general guidelines that regulate the application of the administrative

audit to guarantee that the coverage of priority factors, sources of information, preliminary

investigation, audit project and preliminary diagnosis is sufficient, pertinent and relevant. At this

stage, the purpose of the administrative audit is to establish the actions that must be developed to

implement the audit in a sequential and orderly manner, taking into account the conditions that

must prevail to achieve the established objectives in a timely manner.

2.2.1 Factors to review

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 As a first measure, it is necessary to determine the factors that are considered fundamental for

the study of the organization based on two aspects: the administrative process and the specific

elements that are part of its operation. In the first case, the stages of the administrative process are

incorporated and the components that underpin it are defined, which allow a logical analysis of

the organization to be carried out, since they sequence and relate all its components in a natural

and congruent manner.

This order adheres to strategic purposes that objectively concentrate the essence or “reason for

being” of each phase, and which are the frame of reference to analyze the organization in all its

areas, levels, processes, functions, systems, resources. , projects, products and/or services and

environment, which represents an overview of the way in which each and every one of them

interact in relation to their object or substantive attribution. In the second case, a list of the

specific elements that complement the administrative process is included. Such specific elements

are associated with fundamental attributes that frame their final function, allowing their particular

contribution to the process as a whole and to the functioning of the organization to be determined.

Once the direction and factors to be audited have been defined, the logical sequence for its

development requires a “reconnaissance” or preliminary investigation to determine the

administrative situation of the organization. This stage implies the need to review the technical

and legal literature, information on the field of work and all kinds of documents related to

predetermined factors, as well as the first contact with reality. This procedure can cause a

reformulation of the objectives, strategies, actions to follow or execution times.

It also allows you to outline some of the problems that could arise and provide another

perspective. This initial approach demands a lot of precision, since the information has to be

analyzed with the greatest possible care so as not to cause confusion when its content is

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interpreted. To carry out this task properly, it is advisable to take into account the following

criteria:

a) Determine specific needs.

b) Identify factors that require attention.
c) Define action strategies.
d) Rank priorities based on the goal being pursued.
e) Describe the location, nature and extent of the factors.
f) Specify the auditor profile.
g) Estimate the time and resources necessary to meet the defined objective.

2.2.2 Preparation of the Audit Project

Based on the preliminary information, the necessary information must be prepared to

implement the audit, which includes two sections: the technical proposal and the work program.

The technical proposal can include the nature, the type of audit that is intended to be carried out,

a scope, as well as a count of administrative audits and previous improvement studies, as well as

establishing objectives for the achievements that are intended to be achieved with the application.

of the administrative audit. To formally begin the audit, always based on the magnitude or degree

of complexity, the organization must designate the auditor or team of auditors that it deems

appropriate.

The designation of the person in charge may fall to the head of the internal control body, a line

manager or the person in charge of a technical support unit in any of the areas of the organization,

but, whoever it is, they must have the knowledge and necessary experience in the implementation

of administrative audits. On the other hand, the organization may choose to hire an external

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service specialized in the matter. Finally, there is the possibility of structuring a team that

includes both organizational personnel and external personnel.

Once the responsibility is defined, the designated person or team must be trained, not only

with regard to the management of the method and mechanisms that will be used to collect the

information, but also in the entire process to prepare the application and implementation of the

audit. . That is why the assigned personnel must be made aware of the objective being pursued,

the areas involved, the scheduling of activities, the supporting documents, the estimated

inventory of information that is intended to be captured, the distribution of workloads, the

registration of information, the way of reporting and the established coordination and supervision

mechanisms. For all these purposes, the program must integrate substantive and adjective

personnel at the decision-making level, as well as middle management and operational level

according to their area of assignment, work team or process. Likewise, the requirements for

audiovisual, technical and pedagogical supports must be anticipated.

The investigation work must be carried out without prejudices or preconceived opinions on the

part of the auditor. It is recommended that auditors adopt a friendly and discreet behavior in order

to achieve a positive image, which will facilitate their task and stimulate the active participation

of the organization's staff. In order to prevent false expectations from arising, both good and bad,

it is vitally important that the audit team refrains from making comments that lack support or

making promises that cannot be fulfilled.

This means that the audit guidelines must be adhered to objectively at all times. It is

noteworthy that the consistency of the process as a whole depends, to a large extent, on the

seriousness and respect that the personnel responsible for the audit show towards the audit. the

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members of the organization, so it must present a professional image and maintain a personal

treatment that is strictly work-related.

2.2.3 Preliminary Diagnosis

In this phase, the diagnosis is based on the perception that the auditor has of the organization

as a product of his experience and vision. Although the documented elements of judgment do not

yet exist, there is an approach to reality and organizational culture, which is somewhat intangible,

but which can be seen in the underlying assumptions that give meaning to the form of behavior

and performance in the organization. job. Based on this knowledge, a reference framework must

be prepared to support the reason why the need to audit arises. To do this, the following elements

must be considered:

a) Genesis of the organization

b) Creation of the organization
c) Changes in its legal form
d) Conversion of the object into strategies
e) Management of the delegation of powers
f) Infrastructure
g) Operation scheme (processes/functions)
h) Modifications to the organizational structure
i) Institutional programming
j) Level of technological development
k) Way of operation
l) Recorded performance
m) Achievements achieved

2.3 Instrumentation

Once the preparatory part has been completed, once the factors to be analyzed and the viable

sources of information for this purpose have been defined, and the audit project has been

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prepared and both the technical proposal and the work program have been supported, without

leaving After considering the assignment of responsibility, necessary training and attitude that

should prevail, capitalized on the preliminary diagnosis, we proceed to implement the audit. At

this stage it is necessary to select and apply the collection techniques that are considered most

viable according to the circumstances of the audit, the selection of measurement instruments that

will be used, the management of work papers and evidence, as well as the supervision necessary

to maintain effective coordination.

Continuing with the factors we find the collection of information, this task must focus on the

recording of all types of findings and evidence that make its objective examination possible,

otherwise errors of interpretation may be incurred that cause delays or force the information to be

recaptured. , reschedule the audit or, where appropriate, suspend it. Likewise, a discrimination

criterion must be applied, always based on the objective of the audit, and continually review and

evaluate it to maintain a uniform line of action.

2.3.1 Information collection techniques

To collect the required information in an agile and orderly manner, one or a combination of

the following techniques can be used, among which one of the first is documentary research.

Within this technique, this aspect of the audit involves locating, selecting and studying the

information. documentation that can provide elements of judgment to the auditors. The basic

documentary sources that can be used are:

a. Normative
1. Constitutive Act
2. Law that orders the creation of the organization
3. Rules of Procedure
4. Specific regulations

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 5. Treaties and agreements
6. Decrees and agreements
7. Standards (national and international)
8. Circular jobs
b. Administrative
1. Organization charts
2. Administrative manuals
3. Information and certification systems
4. Work distribution charts
5. Job statistics
6. Staffing
7. Strategic projects
8. Furniture and equipment inventories
9. Networks for logical problem analysis
10. Sociograms
11. Financial and management indicators
12. Improvement studies
13. Previous administrative audits
c. Market
1. Products and/or services
2. Financial areas
3. Financing programs
4. Financial evaluation
5. Value creation

Questionnaires: These instruments, which are used to obtain the desired information in a

homogeneous manner, are made up of series of written questions, predefined, sequenced and

separated by chapters or specific themes, with the purpose of showing the interrelation and

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logical connections between the different areas and areas so that together they provide a complete

profile of the organization. The quality of the information obtained will depend on its structure

and form of presentation.

In general terms, every questionnaire must express the reason for its preparation, and care

must be taken that the questions are clear and concise, presented in logical order, with

understandable wording and ease of response, that is, it is necessary to avoid overloading it with

too many questions. If the case warrants it, a filling out instruction can be included. When the

audit project is very large or the implementation strategy requires it, the evidence to support the

conclusions can be very expensive in relation to the expected benefit of the audit, so sampling

can be used without the need for investigate all areas of the organization.

There are sampling tables that, according to the specifications and volume of information,

establish the minimum amount of information representative of the whole—sample—that is

necessary to collect so that the results obtained from it are valid. However, if during the course of

the review situations are noted from which it can be inferred that irregularities exist, the tests

must be expanded until sufficient evidence is obtained.

Cards: These tools are used to capture the required information according to the purpose and

scope of the audit. They are made up of forms whose design includes boxes, blocks and columns

that facilitate the grouping and division of their content for review and analysis, in addition to

opening the possibility of expanding the response range. Its incorporation into the audit project

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allows us to open the range of information collection and compare concepts in the responses,

which facilitates the analysis of results.

They also make it easier to associate the indicators that guide work with organizational

behavior, a condition that favors the decision-making process. As diagnostic and evaluation tools,

they make it possible not only to review the variables under analysis, but also to appreciate their

influence on other variables or areas of operation, which becomes a link between factors,

indicators, records and consequences. They also simplify the process of capturing information as

they allow technical aspects to be clearly associated with performance, organize ideas and allow

the underlying assumptions that support the concepts to emerge.

2.3.2 Work Supervision

To ensure that the approved program is applied and respected, it is necessary to exercise close

supervision over the work carried out by auditors, delegating authority to whoever has

experience, knowledge and capacity. In this way, as the level of responsibility descends, the

auditor who leads a task will always have the certainty of mastery of the field of work and of the

decision elements to ensure that the actions obey a logic based on the audit objectives.

Supervision in the different phases of the audit execution includes:

a. Review of the work program.

b. Constant and close surveillance of the auditors' work.

c. Timely clarification of doubts.

d. Control of time spent in accordance with the estimate.

e. Timely and thorough review of work papers.

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 f. Final review of the content of the working papers to ensure that they are complete and
fulfill their purpose.

2.4 Exam

Once the instrumentation has been put in place after having selected and applied the collection

techniques, determined the measurement instruments, begun the preparation of the working

papers and recorded the evidence under strict supervision, the examination, which consists of

dividing or separating the component elements of the factors under review to know the nature,

characteristics and origin of their behavior, without losing sight of the relationship,

interdependence and interaction of the parts with each other and with the whole, and of these with

their context. The purpose of the exam is to apply the appropriate analysis techniques to achieve

the proposed purposes with the opportunity, extension and depth required by the universe subject

to examination and the specific circumstances of the work in order to gather the optimal decision

elements.

Fundamentally, the exam serves to classify and interpret facts, diagnose problems that must be

evaluated, and rationalize the effects of a change. The examination procedure consists of the

following steps:

1. Know the fact that is analyzed.

2. Describe that fact.
3. Break it down into its component parts to study all its aspects and details.
4. Review it critically to better understand each element.
5. Sort each element according to the selected classification criteria through comparisons
and search for analogies or discrepancies.
6. Define the relationships that operate between each element, considered individually
and as a whole.
7. Identify and explain their behavior in order to understand the causes that originated it
and the path to attention.

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2.4.1 Multilevel Analysis

Knowing the real profile of an organization through the implementation of an administrative

audit has more than one frame of reference. Although the use of collection techniques resulting

from the perception of reality and the context of action contained in the preliminary diagnosis

constitutes a first level of analysis, the examination of the results obtained guided by the

management indicators and aligned with the assignment of values following the method of

specifying the real situation of each factor and the viable recommendations and from there

deriving the consequent conclusions, depending on the different degree of application of the

administrative and quantitative approaches involved, determine a second level of analysis.

The set of variables associated with the assumptions behind the lines of action, tacit models

that make sense through the detection of unwritten rules of the game, are transformed into a third

level of analysis. The definition of a context of interdependence and interaction that links causes

and effects translates into a fourth level of analysis. If this is associated with the reflection of

performance trends and the proposed redirection, a fifth level can be inferred.

Furthermore, each time a new review of results is carried out in light of the change as a

common denominator, it is possible that new levels or between levels of analysis may emerge

that modify or complement any of the previous levels.

It is clear, then, that an administrative audit allows us to specify the historical behavior of an

organization, but it is also a decision element that represents a mechanism for change. This is

where its substantive ability to outline improvement opportunities to innovate value and turn it

into a sustainable competitive advantage lies.

2.4.2 Formulation of the Administrative Diagnosis

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 Diagnosis, an essential part of the administrative audit, is a resource that translates facts and

circumstances into concrete information, capable of being quantified and qualified. It is also an

opportunity to design a global analysis framework to systematize information on the reality of an

organization, to establish the nature and magnitude of its needs, to identify the most relevant

factors of its operation, to determine the resources available to resolve its needs. issues.

Likewise, it serves to relate the causes of their behavior and the impact of the effects on their

results; and, above all, to serve as a channel for the necessary actions that allow for effective care.

Diagnosis is a study and learning mechanism since it bases and transforms experiences and facts

into administrative knowledge, which allows evaluating trends and situations to formulate an

interpretive proposal, or analytical model of the reality of the organization.

Once the audit has been planned and implemented, an information base is available with the

perspective of the genesis, administrative infrastructure, form of operation and competitive

position, which allows establishing the bases of action with the certainty that it frames the

fundamental variables and strategies. For the administrative diagnosis to provide substantive

decision elements to the audit, it must incorporate the following aspects:

to. Context: Physiognomy of the organization according to its current situation and its

historical trajectory • Mechanics to generate goods, services, capital and knowledge • Sphere of

action • Position in the market • Life cycle of the organization

b. Operational information: Management of functions, processes and projects • Coordination

of actions • Administration of information technology • Analysis of interaction, planning,

organization, direction and control

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 c. Performance: Management of financial and management indicators • Organizational

behavior • Results achieved • Margin of effectiveness

d. Competitive strategy: Strategic purpose • Strategic focus • Strategic processes • Distinctive

abilities

and. Leadership: Organizational culture • Values • Teamwork • Quality of life of the

organization

F. Perspectives: Structure • Business opportunities • Change management • Innovation

potential • Strategic control

2.5 Report

At the end of the examination of the organization, in accordance with the corresponding

procedure, and once the organizational and quantitative analysis approaches have been selected

and the administrative diagnosis formulated, it is necessary to prepare a report, in which the

results of the examination are recorded. audit and clearly identify the area, system, program,

project, etc. audited, the object of the review, the duration, scope, resources and methods used.

Since this document indicates the findings as well as the conclusions and recommendations of

the audit, it is essential that it provides sufficient information regarding the magnitude of the

findings and the frequency with which they occur, in relation to the number of cases or

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transactions reviewed based on the operations carried out by the organization. Likewise, it is

important that both the findings and recommendations are supported by competent and relevant

evidence, properly documented in the auditor's working papers.

The results, conclusions and recommendations that arise from them must meet attributes such

as:

a. Objectivity Impartial view of the facts.

b. Opportunity Availability of information in time and place.
c. Clarity Easy understanding of the content.
d. Utility Benefit that can be obtained from the information.
e. Quality Adherence to quality management standards and elements of the quality
management system.
f. Logic Sequence in accordance with the object and established priorities.

The report constitutes an invaluable factor because it makes it possible to know whether the

instruments and criteria applied contemplated the real needs, and leaves open the alternative of its

prior presentation to the head of the organization to determine the achievements obtained,

particularly when evidentiary or supporting elements are required. judgment that were not

captured in the application of the audit. Likewise, it allows establishing the necessary conditions

for its presentation and instrumentation. In the event of a significant modification, derived from

relevant evidence, the report will have to be adjusted.

2.5.1 General Guidelines for Preparation

It is advisable that before issuing the report, a person independent of the application of the

audit reviews the drafts and working papers, in order to verify that all legal and ethical standards

have been complied with and that the opinion to be expressed present is justified and duly

supported by the work performed. For the report to have a true effect on the performance of an

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organization, it is necessary to present it in a timely manner, that is, pay special attention to the

formulation of criteria, although they can be put into practice, also with a strategic vision, for

which which the following aspects must be taken into account:

a. Do not lose sight of the object of the audit when reaching the final conclusions and
recommendations.
b. Weigh the proposed solutions to determine practicality and feasibility.
c. Explore different alternatives to transmit the causes and effects inherent to the
findings, to translate them into preventive or corrective recommendations, as
appropriate.
d. Homogenize the integration and presentation of the results so that there is coherence
between the findings and the criteria for their attention.
e. Take advantage of all possible support to solidly substantiate the results.
f. Provide the decision levels with the ideal elements for objective and consistent
decision making.
g. Establish the bases to constitute a permanent information mechanism.
h. Raise awareness at decision-making levels of the importance of non-compliance (or
non-compliance) with the recommended measures.
i. Establish the form and content that the reports and monitoring of actions must observe.
j. Take into account the results of audits carried out previously, to evaluate the treatment
and courses of action taken in the implementation of results.

2.6 Types of reports

An audit report is an evaluation of the entire financial situation of a small business. Completed

by a professional third-party accountant, this document covers the assets and liabilities of a

company, and presents the auditor's educated assessment of the company's financial position and

its future. Companies seeking financing, as well as those seeking to improve internal controls,

also find this information valuable. There are four types of audit reports.

2.6.1 Unreserved Opinion

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 Often called a clean opinion, an unqualified opinion is an audit report that is issued when the

auditor determines that each of the financial statements provided by the small business is free of

misstatements. Additionally, an unqualified opinion indicates that financial records have been

maintained in accordance with standards known as Generally Accepted Accounting Principles

(GAAP). This is the best type of report a company can receive. An unqualified report typically

consists of a title that includes the word "independent." This is done to illustrate that it was

prepared by an impartial third party. The title is followed by the main body. Composed of three

paragraphs, the main body highlights the auditor's responsibilities, the purpose of the audit, and

the auditor's conclusions. The auditor signs and dates the document, including his or her address.

2.6.2 Qualified Opinion

In situations where a company's financial records have not been maintained in accordance

with GAAP, but no misrepresentations are identified, an auditor issues a qualified opinion. The

writing of a qualified opinion is very similar to that of a favorable opinion. A qualified opinion,

however, includes an additional paragraph that highlights the reason why the audit report is not

disqualified.

2.6.3 Adverse Opinion

The worst type of financial report that can be issued for a company is an adverse opinion. This

indicates that the company's financial records do not conform to GAAP. Furthermore, the

financial statements provided by the company have been grossly misrepresented. Although this

can occur by mistake, it is often an indication of fraud. When this type of report is issued, a

company must correct its financial statements and they must be re-audited, since investors,

lenders, and other parties who request it generally will not accept it.

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 2.6.4 Abstention of Opinion

On some occasions, the auditor cannot complete an accurate audit report, which means that

situations that may be harming the company cannot be known. This can occur for a variety of

reasons, such as the absence of appropriate financial records. When this occurs, the auditor issues

a disclaimer of opinion, stating that the opinion of the company's financial situation could not be

determined. (Henderson, 2018)

2.7 Presentation of the Report

Once the report has been properly structured, the person responsible for the audit must

convene the audit group to review its content. If any aspect that could be enriched or clarified is

detected, the necessary adjustments must be made to refine it. In accordance with the instance or

level to which the report is directed and the consequent teaching techniques for its adequate

structure, the report can be presented with the support of computer support, slides or audiovisual

material. The final approved report will be made known to:

a. Head of the organization

b. Governing body
c. Internal control body
d. Management levels
e. Middle management and operational level
f. Affiliation group(s), corporate(s) or sector(s)
g. Globalizing dependence (in the case of public institutions)

2.8 Monitoring of the Audit

After selecting and presenting the alternative type of report consistent with the defined

priorities and having verified the operational aspects and general guidelines to prepare the

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implementation proposal, it is advisable to focus on monitoring. At this stage, the observations

that occur as a result of the audit must be subject to strict monitoring, since they are not only

aimed at correcting the detected failures, but also at preventing their recurrence. In this sense,

monitoring is not limited to determining observations or deficiencies, but rather to providing

elements of growth for the organization, which makes possible:

1. Verify that the actions proposed as a result of the observations are put into practice

within the terms and dates established jointly with those responsible for the area,

function, process, program, team, project or resource reviewed in order to achieve the

expected results.

2. Facilitate decision making for the head of the organization.

3. Verify the actions that were carried out to implement the recommendations. At the end

of the review, submit a new report regarding the degree and manner in which they

were attended to.

2.8.1 General Guidelines

Establish general guidelines, specific actions and criteria for the execution of follow-up audits

to guarantee that the observations made by the auditor are addressed and implemented in a timely

manner. In order for the monitoring to comply with the requirements stated in the report with

first-level technical coverage, it must adhere to logical and consistent elements with the audit and

the reality of the organization, which is why it must be considered. guidelines such as:

a. Define the areas in which the implementation of the recommendations proposed by the

auditor will be verified, taking as reference the audit report and the suggestions or

comments of the head of the organization.

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b. Consider the participation of specialists when the evaluation of the implementation of

recommendations requires it.

c. Carry out appropriate tests to the necessary extent to obtain evidence to support the

adoption of the recommendations suggested by the auditor.

d. Establish the necessary mechanisms to maintain adequate control of compliance with

the recommendations within the established terms and dates.

e. Provide the necessary support to the areas involved during the process of monitoring

and implementing recommendations.

f. Evaluate the results and achievements achieved as a result of the application of the

recommendations.

g. Restate the recommendations that are considered essential, especially when there are

fully justified changes in the conditions that gave rise to the observations.

h. Reschedule the commitment dates to implement the recommendations in cases where

they have not been adopted or were partially addressed.

i. The auditor will discuss the determined observations with the person responsible for

the area subject to monitoring, with the aim of providing additional evidence or

elements of judgment that were not presented during the audit, which will allow him to

rectify his opinion.

j. If, at the auditor's discretion, the follow-up of observations derived from an audit in

progress must be reported, it must be attached to the report.

k. Establish, when justified, rescheduling dates to fully implement the recommendations

in accordance with the terms previously agreed with the head of the organization.

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 2.8.2 Criteria for the Execution of the Follow-up Audit

When the implementation of the recommendations and observations is not carried out in

accordance with the indications contained in the report, they are partially executed or poorly

carried out, the application of a follow-up audit is necessary. A decision of this nature has to be

carefully evaluated because it implies a new process, regardless of whether there is a precedent,

since it is an initiative related to the previous audit, but different in its logic and conception.

Under this vision, it is convenient to establish criteria to guide it, such as:

a. Consider the suggestions or comments of the head of the organization regarding the
recommendations and observations contained in the reports, with the purpose of
addressing them in the follow-up audit to be carried out.
b. Interview with those responsible for the areas involved before carrying out this audit,
in order to obtain a general overview of the progress in the implementation of the
recommendations.
c. Specify the number of man-weeks that the review will include, the person responsible
for supervision and the auditors who will participate in the execution.
d. Give priority to verifying compliance within the established terms and scheduled dates
in the prepared support provisions, the definition of corrective measures and preventive
suggestions to avoid the recurrence of the observations detected by the auditor.
e. When new irregularities are detected in the follow-up audit, the scope of the audit
procedures must be expanded in order to present to the person responsible for the area
the necessary recommendations to correct them and jointly establish the commitment
dates.

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 Chapter III Generalities of the Company

and Application of the Audit

The following Chapter III will be based on the investigation of the company “MEZCAL

BENEVA” with which part of its history will be known, what is its nature, scope and other

aspects that will be helpful in seeking to carry out a diagnosis and evaluation for the company. ,

this with the purpose of implementing the knowledge in the process of how to carry out an audit

and knowing if there could be a problem and trying to give my points of view to help it or if not,

contribute to the improvement of the organization.

“You can always edit a bad page, but not a blank page.” – Jodi Picoult.

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 3.1 Background of the company “Mezcal Beneva”

Founded 15 years ago, BENEVÁ is a 100% Oaxacan company that arises from a dream come

true, thanks to the fighting spirit of Pedro Mateo López, originally from Santiago Mazatlán,

Oaxaca, who learned the mezcalero trade inherited from his grandparents, and Now, with a vision

for the future, it has created a new comprehensive concept for the production of mezcal by

applying new technologies in its mezcal processing plant. In less space and time, Benevá

manages to produce a greater quantity of mezcal, without losing the traditional aroma and flavor

of palenques, as demanded by the national and international market.

The Mezcal Benevá Processing Plant located at Km. 22 of the Oaxaca-Istmo highway, in the

Central Valley of Oaxaca, in an area considered the “World Capital of Mezcal” and established

with a “Denomination of Origin” produces 100% agave mezcal, in its four varieties: young,

rested with maguey worm, aged and extra aged. With the same concept of quality, it packages the

brands: Gran Reserva Benevá, Reserva Tío Pablo Benevá and Machos.

In 1990 it produced 500 liters per week, after the business management carried out in 2000 by

Don Pedro Mateo and changing to the current company name Benevá today produces 30,000

liters of artisanal mezcal per month. Benevá adopts this name based on a Zapotec word, which

means old man, the name adopted by the company has the purpose of projecting to the client the

experience and the great tradition that it has in the production of mezcal.

As a representative logo, Benevá selected the image of the thirteen snake goddess, which was

found in tomb 19 of Monte Albán. Currently Benevá produces and markets different

presentations of mezcal such as: Benevá añejo, Benevá añejo maya, Benevá con maguey worm,

Benevá blanco, Machos, Reserva tio Pablo Benevá and Gran reserva Benevá, which are intended

for the local, national and international market. ; this last one is the most important.

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 From its origin, the company Mezcal Beneva can be seen that it did not have a process of

activities that were well defined and of which throughout its years of existence it has been

improving and structuring with respect to its phases in obtaining its product from the Cooking

and the occupation of their traditional earthen ovens until packaging where they go from the

rustic to the technological, which in this sense demonstrates how their evolution was.

3.1.1 Distribution

Spain, United States, Australia, Hong Kong, Singapore, and Taiwan. To ensure the supply of

inputs that Benevá requires, it has 600 hectares 2 of maguey cultivation ready for cutting. As far

as recognitions are concerned, Benevá received the Gold Medal in the World Spirits

Championship awarded by the French Embassy in Mexico, in Chicago, and in Illinois in 1998.

3.1.2 Organizational culture

We have the vision of being a comprehensive company, a leader in the mezcal sector that

develops the entire mezcal production chain that includes the cultivation of raw materials,

transformation and production, packaging of origin and marketing at a national and international

level, to offer a drink of excellence.

Our mission is to produce 100% agave mezcal using the wise customs of ancestral processes,

as well as the integration of new technologies to offer an exquisite drink, to satisfy the most

demanding palates in the world.

3.1.3 The problems of the mezcal sector in Oaxaca

It highlights that in the State of Oaxaca the mezcal production system involves everything

from the production of maguey, manufacturing of mezcal, packaging of the drink to its

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marketing, and that the mezcal sector in Oaxaca is made up of small artisanal mezcal factories,

the which are inefficient, undercapitalized, disorganized, insufficient in infrastructure and

equipment, as well as lacking mechanisms for participation in local and national markets.

Likewise, it is noted that the sector faces various structural problems that affect the links in its

productive chain, this is due to the lack of planning of maguey cultivation, which translates into

recurring critical periods of shortages; of the productive chain of the sector, as well as the lack of

organization of producers to solve problems of technology acquisition, financing and marketing.

It also points out that the absence of leadership on the part of business owners, and rooted in

their culture, becomes a critical factor in the competitiveness of companies in the sector.

However, a very small number of mezcal producers, who produce a considerable volume of this

drink, most of which are destined for the international market, are adopting appropriate

technologies to make the production process more efficient, reduce production costs and address

the problem of the low quality in mezcal.

Without a doubt, the incorporation of new technologies or, where appropriate, appropriate

technologies for the production of mezcal, as well as production organization and management

systems, are decisive in reducing manufacturing costs and therefore in the competitiveness of

business. The problem is that a large number of mezcal producers in Oaxaca do not have a clear

instrument for identification, registration and evaluation of production costs. This document

shows how the above is possible through the analysis of the value chain proposed by Porter

(1991).

3.1.4 Primary activities

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 In this first section, the primary activities carried out by the Benevá company will be described

with the purpose of providing inputs to the productive chain, which is focused on the cultivation

of agave, which is the main input for the production of mezcal in its different forms.

presentations The mezcal production process at the Benevá company consists of five phases: i)

cooking, ii) grinding, iii) fermentation, iv) distillation and v) packaging.

From the agave, Benevá obtains its supply of agave angustifolia ha, cultivating and harvesting

an area of land of 600 hectares. When the company was founded it did not have planning or

logistics to carry out the cultivation and cutting of the agave.

Currently, the company has a scheduled program for the cultivation and cutting of its main

input. The company's monthly raw material requirements are 360 tons, which is equivalent to the

harvest of 4 hectares. Every year the company uses 4,320 tons of agave, which is equivalent to

the harvest of 48 hectares.

Based on the previous data, it can be mentioned that the supply of the main input is assured

until the medium term, since the company has 600 hectares of agave and even has the capacity to

increase mezcal production to more than 40,000 liters; up to 46,875 liters per month based on this

inventory. Addressing more broadly the phases of agave cultivation and harvest, it can be

mentioned that in these activities 10 day laborers are permanently employed, who to carry out

their tasks have various tools such as machetes, pickaxes, axes, a tractor with various couplings,

among other tools.

1) Cooking: Even Benevá carries out its mezcal production process in an artisanal way; for

which it uses earth ovens, which have high production costs, if these are compared to the

autoclaves that exist in other companies that produce mezcal. industrially, or those used in tequila

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factories; it can be seen that in this area Benevá presents serious delays, which could be resolved

by acquiring an autoclave, which would allow the cooking of the agave to be more efficient.

To carry out the cooking of the agave, the piñas or hearts of the agave are cut by the laborers

who use machetes, as well as firewood to heat the oven. When carrying out this activity, a large

amount of time and inputs are used; firewood; the approximate average cost per kilo of cooking

agave is $0.5.

2) Grinding: In this phase, a Chilean mill is used, which is moved by a mule; in addition to the

food that is provided to the animal, as well as its care, the labor of two workers is used in this

phase; Approximate average cost of grinding per kilo of cooked agave is $0.25. If the artisanal

milling phase carried out by Benevá is compared with that of other companies that have

machinery to carry out this activity, it can be identified that the company has serious deficiencies

in this phase, since waste is produced when extracting the juice from the cooked agave, some

other producing companies use grinding machinery, which they adopted from the sugarcane or

tequila industry (Silva and Caballero, 2016).

To make this phase more efficient, Benevá could acquire a mechanical mill, which can be

adopted from the sugarcane or tequila industry, and in the best of cases adopt an appropriate

technology, developed and supplied by a local or national manufacturer. This action would result

in more efficient extraction of the juices from the cooked agave. That is, less waste would be

generated, since the artisanal mill currently used generates a great filtration of the juices. It would

also reduce the time spent in this phase.

3) Fermentation: In the fermentation of the agave juices, wooden vats are used, water is

extracted from a well, in addition to the labor of two laborers, who are in charge of filling the vats

and supervising the fermentation process. ; as well as adding water to the mixture. It is necessary

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to mention that the average cost of carrying out the fermentation of each liter of agave juice is

$0.50. Some competing companies have presented greater efficiency in this phase by

incorporating ammonium sulfate into the fermentation to accelerate the process, which is not

recommended, since the incorporation of said chemical substance results in the generation of

unwanted alcohols, the which impact the quality of the product.

4) Distillation: Regarding the distillation phase, Benevá carries out this activity in artisanal

distillers, which are heated by firewood, and have a copper coil through which the mezcal

evaporates, the condensation of This occurs when the coil, in which the evaporated alcohol is

located, is cooled by water. The main inputs required to carry out the distillation of mezcal are:

firewood, water, agave juices and the labor of two laborers, who are the ones who distill the

artisanal mezcal in this phase of production. The average cost of carrying out the distillation

phase of a liter of mezcal is $5. It is worth mentioning that this cost includes the double

distillation that the drink receives, and represents the highest costs of the manufacturing process.

Some of the deficiencies detected in this phase of the mezcal distillation process are due to the

fact that the company does not have efficient distillation equipment, since the Benevá artisanal

distillers present serious problems in terms of energy losses, as well as mezcal. , which

evaporates and escapes in the form of gas through the holes in the distiller. Benevá could make

this process more efficient by incorporating industrialized distillers which have better energy

efficiency in the inputs and outputs of energy, which The above would result in better use of

inputs, as well as a reduction in distillation time.

5) Packaging: Regarding the mezcal packaging process, it is observed that the company has

high-tech equipment, which allows mezcal to be poured into bottles in its different presentations.

Bulk mezcal is packaged in bottles, and labels, seals, lids, boxes, and maguey worms are added.

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It should be noted that the main inputs used for packaging mezcal are provided by suppliers from

the Federal District, who supply them every three months. Information on the production costs of

Benevá's leading product in its 750 ml presentation is presented below.

The production cost of 750 mlts of white mezcal is $24.30, while the average cost of

packaging is $20 pesos. This price includes the cost of all inputs as well as the payment of labor,

which is used to operate the packaging machinery and auxiliary processes such as packaging and

supply of inputs to the production line and administrative expenses

3.1.5 Traditional process for the production of mezcal

From the planting of the agave, nine years must pass to select and harvest the plant from

which the maguey pineapple is obtained. Subsequently, the pineapple is cooked in traditional clay

and stone ovens, and then crushed in Chilean-type mills. The crushed maguey is fermented in

white oak wood vats, and then distilled in copper stills, where the mezcal is finally obtained

through a distillation process. All this work is done by hand, in factories called palenques.

The collected drink is homogenized and stabilized, obtaining young mezcal, which is sent to

the packaging area; However, if what is required to be produced is aged or rested mezcal, it is

previously deposited in white oak barrels, where it acquires its characteristic fine wood flavor. To

prepare mezcal with worm, it is previously collected and selected in the rainy season and

subsequently carefully treated, and then bottled.

3.1.6 Mezcal production process with technology

When the previously selected maguey pineapples arrive at the Benevá Mezcal Processing

Plant, the new mezcal production process begins. As if it were a huge pressure cooker, the

pineapples are cooked in the autoclave, and once they cool they are sent by a transport

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mechanism to the grinding area, where they are torn and crushed to extract the juices of the

maguey. Once this is obtained, the raw material is sent to the fermentation tanks, where the

transformation of the maguey juices begins by the action of the natural yeasts that the same

material generates. Subsequently, the fermented maguey juices are subjected to a first distillation,

obtaining ordinary mezcal, and in a second distillation, 100 agave mezcal is achieved.

Once the distillation is completed, the product is stored, to then be homogenized and

stabilized, thus obtaining young mezcal with the characteristic flavor and aroma of Benevá,

which is subsequently bottled through a semi-automated process. However, if it is required to

produce rested, aged or extra aged mezcal, it is previously deposited in white oak barrels, where,

due to the action of time, it acquires its characteristic flavor of fine woods. To obtain mezcal with

worm, it is previously treated and then carefully packaged to obtain its characteristic aroma. In

the finished product area, each bottle of mezcal is carefully labeled and reviewed, and then

packaged and stored, making the product ready to be distributed in the national and international

market.

3.1.7 Logistics

To carry out its primary activities, Benevá requires the support of secondary activities, such as

logistics, which includes various activities; these tasks are carried out by the production and

packaging department, which is in charge of two engineers 5. The function What they do consists

of organizing all the planning and logistics to carry out the cultivation and harvest of the

mezcalero agave, in such a way that there is an optimal supply of inputs in the production line, in

addition to coordinating the supply of the agave. The engineers are also in charge of contacting

the suppliers of other inputs such as: wood, boxes, bottles, packaging, lids, seals, maguey worms,

etc.

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 Regarding the provision of inputs and distribution of the mezcal produced by the Benevá

company, it is carried out using transport equipment, which is made up of 3 compact multi-

purpose vehicles, 2 3.5-ton vans, as well as an 8-ton truck. . To carry out administrative, logistics

and auxiliary tasks, Benevá has a total of 20 employees, which is made up of administrative staff,

assistants and drivers.

3.1.8 Marketing

Regarding marketing, this is in charge of the sales and customer service department. The

people responsible for this department are two graduates in administrative areas 6, who are

responsible for establishing contact with local, national and international clients, in addition to

designing and implementing marketing strategies, to increase sales volume, make distribution

more efficient and through; of heavy investments in advertising to increase the demand for

mezcal, and position the brand in the market. These actions are carried out through electronic

advertising, participation in fairs, as well as in various events, in which the company can have

direct contact with potential clients.

In addition, Benevá has an Internet site (www.mezcalbeneva.com) in which each of the

products it sells is detailed, and through this space it disseminates the history of the company and

the international recognition it has received for the quality of its products. . On the company's

website there is a section that is in charge of the sales and customer service department, where

customers can contact the company either by telephone or by email in case they have any

dissatisfaction with the product. whether to acquire or not demand a larger volume.

The company has 4 stores where it exhibits, promotes and sells mezcal, and they are located in

the first square of the city of Oaxaca, the company also has Rancho Zapata, in addition to being

the artisanal mezcal factory, it is a restaurant in which you can try the gastronomy of the state.

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The company has 4 stores where it exhibits, promotes and sells mezcal, and they are located in

the first square of the city of Oaxaca, the company also has Rancho Zapata, which in addition to

being the artisanal mezcal factory, is a restaurant in which you can try the gastronomy of the

State.

3.1.9 Company administration

To carry out other secondary activities such as the coordination of human resources, their

respective payments of salaries, taxes to the government, as well as the management of finances,

etc., the company has an administrative and accounting area, located on Calle de Colón 518A,

Colonia Centro, which is in charge of an accountant 7, who is responsible for carrying out the

finances of the entire company. The general accountant is assisted in his tasks by a group of 2

assistant accountants and 4 secretaries, as well as an assistant

3.1.10 Agave and mezcal production and marketing strategies in Oaxaca

The mezcal production system in Oaxaca has been developed for a little more than 50 years;

period in which it has presented stages of boom and crisis linked to political, institutional,

cultural, technological, socio-economic and environmental factors. It is currently in a process of

productive recomposition based on the self-use of the raw material or mezcalero agave (A.

Angustifolia Haw); a condition that is associated with the economic resources coming from

international migration, the emerging tequila market, the low prices of agave and mezcal and the

lack of a comprehensive promotion and development policy for this productive sector.

However, in the face of these unfavorable conditions, peasant producers have continued with

their resistance and productive per-assistance and their socioeconomic reproduction, through

processes of adaptation and design of socioeconomic reproduction strategies based on the

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complementarity and diversification of productive activities. These socioeconomic reproduction

strategies represent a mechanism to overcome poverty and marginalization that agricultural

activity alone does not offer. According to Antonio17, these economic activities other than

primary activity make it possible to compensate for income during times of the year when

agricultural production suffers losses caused by natural disorders or when the harvest is

insufficient.

The concept of strategy is relevant in productive activities, although its application originates

in Greek culture, applying the military concept, later it was applied in business administration,

sports activities, marketing, and economic policy. , in agricultural policy, etc. Under this

theoretical-conceptual framework regarding strategies, their applicability is ideal and pertinent to

the peasant producers of the “Mezcal Region”, because in informality they plan their objectives

and goals, which are covered from their capabilities, associated with predictability and trends

under its own logic based on changes in economic, political, institutional, environmental and

cultural circumstances.

Their resistance and persistence as a social and productive group in the current context of

globalization is based on this set of qualities, aptitudes and capacities. The production and

marketing strategies of the agave and mezcal producers in the region have been differentiated

related to the boom and crisis stages that this productive sector has presented: the boom stage

covered the period from 1950 to 1980, and the crisis stage from 1980 to date.

In the boom stage (1950 to 1980), the productive strategy of mezcal agave in the “Mezcal

Region” began as a complementary source of income, because its largest source of income

originated from the cultivation of basics and the sale of labor force at the local level. Obtaining

income from mezcal agave is achieved through the commercialization of this raw material in two

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ways: with mezcal producers in the region and with economic agents who hoarded the agave,

conditioned the harvest and set the price. This condition greatly limited the cultivation's spread,

coupled with its long period of development (on average 8 years) and being considered as a

means of sustenance for peasant families.

The incursion of tequileros into the region generated a shortage of raw materials for the

production of mezcal. This resulted in the massive closure of a little more than 50% of the

palenques that existed in the state (in Matatlán they closed more than 200 palenques out of a little

more than 300 that existed), which began the massive emigration of producers to the United

States. , due to the lack of employment options; Likewise, the agricultural area oriented to the

production of agave decreases drastically to a little more than half (approximately 8 thousand

hectares), the commercialization of agave oriented to the production of mezcal becomes more

acute and complicated, and counterfeiting and adulteration of mezcal causing a decrease in

demand and low prices for mezcal due to unfair competition with adulterated products.

However, the producers who survived these socioeconomic phenomena continued with the

production of the mixture from the self-use of their own agave crops and the commercialization

of mezcal in the local market.

It is relevant to highlight that the evolutionary tendency of the peasantry in the “Mezcal

Region” in Oaxaca shows the relationship between the peasantry, capital and the revaluation of

the rural within the framework of the new rurality, in which productive activities do not

agricultural, mainly international migration, assume an important role in the integration of the

global income of families and in supporting the process of productive recomposition that is

expressed in the refunctionalization of agriculture and the self-use of raw materials in the

production of food. mezcal

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 These elements constitute an important part of the socioeconomic reproduction strategies

(production and marketing) of this productive sector, favoring the resistance and social and

productive persistence of these groups in the region, both in the boom and crisis stages of the

system. production of mezcal. The transformation processes in the mezcal production chain,

currently supported by economic resources from international emigration, have been related to

external conditions, as happened in the years of 1980 and 2000, when tequila producers from

Jalisco ventured into the “Mezcal Region” in the face of the international emergency in demand

for tequila, which caused a double effect: on the one hand, the dismantling of the mezcal

production chain, on the other, the recomposition and refunctionalization of agriculture and the

production of the mezcal in the region.

The dismantling of the mezcal production chain is associated with the lack of an institutional

policy to promote and develop this productive sector practiced by peasant producers. It is

important to highlight that the emergence of a sector with a business tendency oriented towards

the industrialization and commercialization of mezcal, has caused harm to artisanal producers of

mezcal whose production is based on traditional and rustic production technology, causing unfair

competition due to the high costs of production in artisanal production, the presence of

counterfeiting and adulteration phenomena caused by the industrialization process of mezcal.

It is important to mention that the institutional sector related to the mezcal production system

promotes differentiated public policies for promotion and development towards this productive

sector, considering the particularities and productive characteristics of the peasant producers who

develop agave agricultural production activities. mezcalero and artisanal production of mezcal.

On the other hand, the industrial sector generally does not develop agricultural activities for the

production of agave mezcalero. This condition puts peasant producers at a disadvantage due to

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the high risks represented by agricultural activity subject to rainfed conditions, which causes

great economic losses.

3.2 Preparation of the work plan

An audit program, also called an audit plan, is a plan of action that documents what

procedures an auditor will follow to validate that an organization is meeting compliance

regulations. The goal of an audit program is to create a framework that is detailed enough for any

external auditor to understand what official examinations have been completed, what conclusions

have been reached, and what the reasoning is behind each conclusion. The framework should

explain the objectives of the audit, its scope and its timeline. The audit program should also

describe how the working papers – the documented evidence of the audit – will be collected,

reviewed and reported.

3.2.1 Preparation of an audit program

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 The details of the audit program are specific to individual organizations based on their unique

needs, but the preparation of the audit plan will consider the relevant regulatory audit deadlines,

staffing requirements and reporting structure, and overall objectives. In particular, these

objectives will consider how the company will maintain regulatory compliance through risk

assessment and management procedures. The audit program should also include a schedule

detailing when specific aspects of the audit program should occur and how they should be

prioritized.

During audit planning and conduct, companies can leverage lessons learned from previous

audits by implementing newly learned best practices that alleviate risk and maintain compliance.

Audit development guidelines and best practices vary by industry, but local and regional audit

certifications are available, as are internationally recognized audit certifications.

3.3 Preliminary questionnaire where the audit work will be carried out

Dear Sir/Madam: In order to formulate the company's strategic plan, I respectfully request 15
minutes of your valuable time to respond to this survey.
For the following questions, mark an X for the YES or NO option as appropriate.
1. Administrative Aspects
YE NO
AH
The company has its Mission defined in writing. x
The company has its Vision defined in writing. x
The Mission and Vision of the company are focused on customer x
satisfaction (internal and external)
The company has defined its corporate values. x
Has participated in training on dissemination of strategic planning x
(mission, vision, objective, goals and values)
Do you know the company's objectives? x

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Are your goals clear? x
Consider that the objectives are linked to the goals x
Do your superiors ask your opinion to change some aspects of the x
company?

Answer the following statements on a scale of 1 to 5; where 1 is bad; 2 is deficient; 3 is

acceptable, 4 is good and 5 is very good.
1 2 3 4 5
The teamwork of managers and employees is? x
The quality of the managers' work is? x
Communication between managers and officials is? x
Communication of goals and objectives is? x
Planning the work of managers is? x
The structure of the organization is? x
The clarity of employee roles is? x
Information system training is? x

2. Structure
Answer the following statements on a scale of 1 to 5; where 1 is bad; 2 is deficient; 3 is
acceptable, 4 is good and 5 is very good.
1 2 3 4 5
Know the structure of your company, that is, how it is made up. x
Within the company, the Mission, Vision, Values and Organization x
Chart are published.
Know the hierarchical levels. x
There is a manual of functions, processes and procedures according x
to the company's organizational chart.

3. Relations

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 Answer the following statements on a scale of 1 to 5; where 1 is bad; 2 is deficient; 3 is
acceptable, 4 is good and 5 is very good.
1 2 3 4 5
You feel motivated to continue working in the company. x
The people he works with support him in doing his job. x
You know who to contact if you have problems within the company. x
There is a good relationship with his co-workers. x
There is a direct relationship with his superiors. x
Are there divisions between personal life and work life within the x
company?

4. Incentives
Answer the following statements on a scale of 1 to 5; where 1 is bad; 2 is deficient; 3 is
acceptable, 4 is good and 5 is very good.

1 2 3 4 5
Is there any incentive other than salary? x
Are your functions recognized by your superiors in meeting the x
organization's objectives?

5. Leadership
Answer the following statements on a scale of 1 to 5; where 1 is bad; 2 is deficient; 3 is
acceptable, 4 is good and 5 is very good.
1 2 3 4 5
Do you know your superiors? x
There is some type of relationship with your superior. x
Your superior creates an appropriate work environment. x
Does your superior share information about the organization? x
Do you use organizational values to guide you? x
Does your superior suggest ideas to you that contribute to the x
organization?

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 6. Customer service
Answer the following statements on a scale of 1 to 5; where 1 is bad; 2 is deficient; 3 is
acceptable, 4 is good and 5 is very good.
1 2 3 4 5
The quality of service provided is? x
The company hours are? x
How fast is customer service? x
Is the telephone service? x
Personalized attention is? x
The quality of delivery of products and/or services is? x
The personal presentation of managers and employees is? x
The fulfillment of the promises offered is? x
The company's relationships with customers are? x

7. Direction and Control

Answer the following statements on a scale of 1 to 5; where 1 is bad; 2 is deficient; 3 is
acceptable, 4 is good and 5 is very good.
1 2 3 4 5
Knowledge about company strengths is? x
Knowledge about the company's weaknesses is? x
The performance evaluation system in the company is? x
The inventory control system is? x
Are the quality control policies and procedures? x

8. Staff
Answer the following statements on a scale of 1 to 5; where 1 is bad; 2 is deficient; 3 is
acceptable, 4 is good and 5 is very good.
1 2 3 4 5

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 The knowledge that each official has about the work they do is? x
The quality of the work of the officials is? x
Is the fulfillment of objectives by officials? x
The induction process is? x
The training of officials is? x
Do officials receive congratulations for the performance of their x
work?
Can officials make decisions without consulting their bosses? x
The performance of officials and areas to achieve the mission and x
goals of the company is?
The interpersonal relationship between officials is? x
Satisfaction with salary is? x

If you have any suggestions for improvement in the company, please write them:
The company, like any other, will always be in constant improvement because it will always

have or arise problems that will need a solution, but in the end the response time to be able to

provide a solution to the conflicts that arise is what each company must improve at a given

moment until anticipate these to happen and move on to even greater preaching.

Thank you for your cooperation

3.3.1 Questionnaire evaluation

By completing this questionnaire it lets us know that the company Mezcal Beneva meets the

various requirements with which some companies sometimes tend to have conflict, one of them is

the implementation of its organizational philosophy, which lets us see that it is well implemented.

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within the organization with its managers and employees. Likewise, it is known that according to

the service provided, it is reflected in good terms since the quality provided can be considered

first class, also mentioning other points such as staff, communication, management or

relationships, the company reflects good terms, although not as excellent, these can be improved

with the application of methods, training or programs that seek their improvement because this in

the end is what will make a great company known, which is seeking to change and improve every

problem that is found in it.

In conclusion, with what we have seen in this chapter, we find that carrying out a

questionnaire within the organization is of great importance since it helps us know how to find

the company that currently needs, see what are the areas for improvement that it seeks to obtain.

after carrying it out, in short, various issues that may arise at the time of carrying them out but

always with the sole objective and goal of the company's benefit and customer satisfaction.

3.4 General conclusion

To conclude this work and with the purpose that entails me to see the process carried out to be

able to bring it to its conclusion, I can mention the administrative audit, as that process that any

company or organization needs to implement at some point in its existence in which it works.

since it is an exemplary tool to find and know all the situations you are going through, opening

the perspectives of directors, owners or managers who are in charge of the institution, in order to

let them know or understand that everything is always in constant movement. and changes that

are sometimes inevitable and that in one way or another are not inert to happen to them, but

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knowing what to do after they occur, basically knowing how to act in the face of such problems,

is what one as a strategist must improve. Knowing instruments, methods and forms and knowing

how to implement them entails hard work and not at all easy, but in the end the results and future

benefits from carrying them out will be of great satisfaction that as a company it will try to

achieve, meeting all its internal and external objectives, but encompassing all of this to satisfy the

needs of a person the client.

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 Annexes
“To write is to return the world to its original state, to expel it towards the territory of what has
not yet been named.” – Jorge Esquinca.

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 1. Company organization chart

2. Vision

We have the VISION of being a comprehensive company, a leader in the mezcal sector that

develops the entire mezcal production chain that includes the cultivation of raw materials,

transformation and production, packaging of origin and marketing at a national and international

level, to offer a drink of excellence.

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 3. Mission

Our MISSION is to produce 100% agave mezcal using the wise customs of ancestral

processes, as well as the integration of new technologies to offer an exquisite drink, to satisfy the

most demanding palates in the world.

4. Product Catalog

Benevá Aged Mezcal

Mezcal Aged in white oak barrels, dark amber gold in

color, with an aroma of dried grass and a slightly smoky

flavor, packaged in a line bottle, under the strictest quality

control.

Reposado Mezcal with maguey worm

Magical, mystical and aphrodisiac drink that awakens the sensuality of

men and women around the world. Amber color, aroma of fine wood and

maguey worm; rested in white oak barrels and seasoned with a maguey

worm.

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 Mezcal Beneva Blanco

Young Mezcal of excellent quality, full-bodied transparent, strong

aroma, sweet flavor and sober presence

Mezcal Gran Reserva Benevá

Product of ancient tradition preserved over the centuries, from

generation to generation. Intense amber color, full-bodied,

smoky aroma and sweet smell of fine wood. Aged in white oak

barrels and packaged in a pumpkin-shaped collector's bottle,

handcrafted by Mexican artisans.

Mezcal Gran Reserva Tío Pablo

Drink with a delicate aroma of fine wood, smoky flavor and great body

acquired from aging in white oak barrels, packaged under the strictest

quality control in a collection bottle handcrafted by Mexican artisans.

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 Mezcal Benevá Machos
It is an excellent Mezcal that pays tribute to the man of character with self-

control. Machos is slightly amber, with a generous brightness and in its

aroma you can perceive a mixture of oak and maguey caramel, seasoned

with Maguey worm .

cream Mezcal Benevá

The Mezcal Benevá cream is the fruit of a double distillation of agave,

which combines the slow and harmonious initial distillation with another, in

which the liquor macerated in selected fruit is contagious and mixes

flavors that satisfy the finest palate.

As an aperitif or as a digestif, it is essential at any table or meeting.

Flavors: Piña Colada, Cappuccino, Passion Fruit, Coconut, Coffee and Blackberry

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