In order to gain maximum effectiveness from this
Management audit, the small business manager
should answer all questions in the audit, with an affirmative answer indicating no problem
and a negative answer indicating the presence of a problem in a specific area.
After completing the audit, the manager can review the analysis of each section of the
audit that follows to determine what action is most appropriate. The audit analysis
provides an overview of how the various elements of the audit are related. The audit
covers seven critical business functions: basic planning, general bookkeeping and
accounting practices, financial planning and loan proposals, sales and marketing,
advertising and promotion, personnel and production.
In the healthy and financially sound small business, these seven functional areas are
in balance. In many cases, one cannot work on all seven areas at once. The manager must
decide which area to concentrate on based on past practices and the needs of the business.
Regular use of this audit instrument can help make the small business manager more
efficient.
