Internal auditing -- A Constructive management control function;

              Internal Auditing — A Constructive Management Control Function
by E. FREDERICK HALSTEAD Partner, Miami Office
Presented before the Southern Association of College and University Business Officers, New Orleans — April 1963
AT THE OUTSET, I should like to dispose of an obstacle invariably
raised in discussing management-control problems with a special­ized
group such as bankers, insurance officials, retailers, wholesalers, contractors—and perhaps even college and university business officers. Every group instinctively feels that its particular area of endeavor is different. Admittedly, there are important differences in the nature of operations and objectives among the various fields of endeavor comprising our economy. The academic atmosphere, idiosyncrasies of academic personnel, and the complexity of problems with which university business administrators must deal are different from those of profit-motivated organizations. Nevertheless, the techniques of administration and tools of management control applied successfully by progressive, profit-motivated organizations have been applied with equal success to the organization and management-control problems of colleges and universities.
The philosophy has been well received in my limited dealings with presidents and chief financial officers of universities. I might also add that this philosophy has been enthusiastically endorsed by the trustees of these institutions.
TODAY'S CHALLENGE TO BUSINESS ADMINISTRATORS
Colleges and universities are playing an ever increasing and important part in our over-all economy and way of life. Educational institutions have always been important, but in this fascinating era of electronics, nuclear science, rockets and the like, institutions of higher learning are playing one of the major roles and, indeed, are our most treasured national resource. Furthermore, colleges and universities are big business, consuming an ever increasing propor­tion
of our total national income, and are important factors in the economics of the communities in which they are located. Here in New Orleans, Tulane spends approximately $19 million annually. How many other enterprises are there of this magnitude in New Orleans? In my community, the University of Miami spends
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