David Functional Audit
Name: Company:
Position:
Instruction: Please indicate your response by checking "Yes" or "No" for each
question.
Functional Areas Questions YES NO
Management Does the firm use strategic
management concepts?
Are company objectives and goals
measurable and well
communicated?
Do managers at all hierarchical
levels plan effectively?
Do managers delegate authority
well?
Is the organization’s structure
appropriate?
Are job descriptions and job
specifications clear?
Is employee morale high?
Are employee turnover and
absenteeism low?
Are organizational reward and
control mechanisms effective?
Marketing Are markets segmented effectively?
Is the organization positioned well
among competitors?
Has the firm’s market share been
increasing?
Are present channels of distribution
reliable and cost-effective?
Does the firm have an effective
sales organization?
Does the firm conduct market
research?
Are product quality and customer
service good?
Are the firm’s products and services
priced appropriately?
Does the firm have an effective
promotion, advertising, and
publicity strategy?
Are marketing, planning, and
budgeting effective?
Do the firm’s marketing managers
have adequate experience and
training?
Is the firm’s Internet presence
excellent as compared to its rivals?
Finance/Accounting Where is the firm financially strong
and weak, as financial ratio analyses
indicate?
Can the firm raise needed short-
term capital?
Can the firm raise needed long-
term capital through debt and/or
equity?
Does the firm have sufficient
working capital?
Are capital budgeting procedures
effective?
Are dividend payout policies
reasonable?
Does the firm have good relations
with its investors and stockholders?
Are the firm’s financial managers
experienced and well trained?
Is the firm’s debt situation
excellent?
Production and Are supplies of raw materials, parts,
Operations and subassemblies reliable and
reasonable?
Are facilities, equipment,
machinery, and offices in good
condition?
Are inventory-control policies and
procedures effective?
Are quality-control policies and
procedures effective?
Are facilities, resources, and
markets strategically located?
Does the firm have technological
competencies?
Research and Does the firm have R&D facilities?
Development Are they adequate?
If outside R&D firms are used, are
they cost-effective?
Are the organization’s R&D
personnel well-qualified?
Are R&D resources allocated
effectively?
Are management information and
computer systems adequate?
Is communication between R&D
and other organizational units
effective?
Are present products
technologically competitive?
Management Do all managers in the firm use the
Information Systems information system to make
decisions?
Is there a chief information officer
or director of information systems
position in the firm?
Are data in the information system
updated regularly?
Do managers from all functional
areas of the firm contribute input to
the information system?
Are there effective passwords for
entry into the firm’s information
system?
Are the firm's strategists familiar
with the information systems of
rival firms?
Do all information system users
understand the competitive
advantages that information can
provide firms?
Are computer training workshops
provided for users of the
information system?
Is the firm’s information system
continually being improved in
content- and user-friendliness?
