A MANAGEMENT AUDIT OF SMALL BUSINESS LONG‐TERM FINANCIAL AFFAIRS

Most small businesses today could probably benefit from a management audit of the firm's long‐term financial affairs. In large corporations, internal auditors generally have free rein to audit all operations—including the activities of the corporate treasurer and the controller's department. Such audits involve not only the financial aspects of operations, but the day‐to‐day operating aspects as well. Internal audits of operations are typically called operational audits in the United States and value‐for‐money audits in the countries of the British empire. “Value‐for‐money audits” is probably the best name because the objective of the auditors is to point out ways that a department can save money or enhance revenues. Now it would be nice if small businesses had internal auditors to conduct value‐for‐money audits, but such is not the case. Most small companies do not have internal auditors. However, there is another alternative. The owner or manager of a small business can conduct the audit on sort of a do‐it‐yourself basis. Although every department could possibly benefit from such an audit, it is the long‐term financial management of the organization that might profit the most from a value‐for‐money audit.