A Materials Auditing System: A Case Example

Auditing, as a management technique, has been recognised as an independent and systematic evaluation of various activities performed in an organisation in order to improve enterprise performance and suggest ways to improve through pointing out the deficiencies in the management systems. Auditing has traditionally been for periodically apprising the management about the deviations that are taking place against the various established policies, procedures and standards. Auditing is very much prevalent in accounting functions. The conventional auditing is defined as that which embraces activities to express an opinion on the truth and fairness of the financial statements. There are two types of audits, namely operational and financial. Table I presents both the audits in a summary form.