AUDIT REPORTING AND CONFERENCING FOR DIFFERENT MANAGEMENT STYLES

The management style of an organisation can influence the relative effectiveness of alternative approaches to conferencing and reporting. Implications of autocratic, supportive, custodial and collegial management styles are described. Generally, Theory X environments should be addressed with more formal reports and detailed implementation plans, Theory Y environments call for greater interaction and explicit commentary by auditees, and Theory Z environments warrant a joint approach from the initial conference to the final report. The applicability of quality circles to the communication channels between auditor and auditee is explained, with a suggestion that auditees be educated as to the advantages of the audit and internal controls.