Strengthening and Enriching Audit Practice

Abstract

The audit profession has been facing reassessment and repositioning for the past decade. Enquiry has been an integral part of an audit; however, its reliability as a source of audit evidence is questioned. To legitimize enquiry in the face of audit complexity and ensure sufficiency, relevance, and reliability, the introduction of Stafford Beer’s Viable System Model (VSM) into theory and practice has been recommended by a number of authors. In this paper, a variant on previous VSM-based audit work is introduced to perfect auditing assessment of accountability and compliance. This variant is termed the “VSM/NVA variant” and is applicable when the VSM model is in use for an audit. This variant is based on application of Network Visualization Analysis (NVA) to a VSM-modeled organization. Using NVA, “decision leaders” can be identified and their socio-technical relevance to VSM systems explored. This paper shows how the concepts of decision leaders and their networks can enrich and clarify practical applications of audit theory and practice. The approach provides an enhanced real-world understanding of how various VSM systems and network layers of an organization coalesce, and how they relate to the aims of the VSM model at micro and macro levels.