ID number: Strategic Audit Introduction Strategic audit is done by business organizations so as to draw a comparison between the present state of the business and what it would have been on staying aligned towards achieving its goals. The auditor performs the strategic audit in the form of written report that consists of evaluation of each of the functional areas of the organization and gives them individual rank on the basis of the alignment of these areas with the goal of the organization. Discussion Strategic audit can be regarded as a review of the business plan of the company and even its strategies so as to analyze the strengths and weakness of the company or the probable shortcomings and even enables the company towards success.
The strategic audits is the evaluation and examinations of the various strategic management process that is undertaken by a company and even measures the performance of the company in respect of the corporate strategy. Strategic audit should be always undertaken by a company when its performance is declining so as to know the exact reason behind its deteriorating performance.
The strategic audits can be performed either by a group in house auditors or can even be performed through a contracted audit firm. The main responsibility of the auditors is to audit the company’s performance in respect of the present strategy of the firm and even try to identify the possible problems that are associated with the current business strategy that hinders the performance of the company (Wheelen 123). The report that is formulated by the auditors it is then submitted to the upper management of an organization along with all the possible remedies that would be helpful for the organization in longer run.
The remedies are then incorporated by the management in the organization so that the overall performance of the company can be increased and this is where the importance of strategic audit lies in the organization. The strategic audit helps to answer the probable questions that are related to the future aspect of the company either in the extended future or in the near term, and it even states the reality as to whether the right measures are being adopted by the company.
Strategic audit also helps the company to map opportunity and identify the weaknesses and threats so that the company can make use of better chances that may facilitate future success for the company. Every business are subjected to some form of strategic risks that are not outlined so easily through traditional audits but strategic audits helps in highlighting such strategic risks and even helps to determine which one of the risks is most critical for the organization.
It also helps an organization to map the goals with that of available resources and forecasts the exact condition of the environment so that the organization remains at pace with the changing environment. Conclusion Strategic audit do not only perform the internal analysis and evaluation of a company’s strategies but also helps a company to outperform in the business environment. There are various benefits of strategic audit and if it is undertaken successful then much of the risks of the company can be catered and even the future challenges that the company can face can be dealt with efficiency.
Work Cited Wheelen, Thomas. Concepts in Strategic Management and Business Policy. New Delhi: Pearson Education India. 2008. Print.