Ethnographic auditing is the application of ethnographic or anthropological concepts and methods to the appraisal of administrative controls over resources. Ethnographic auditing highlights the role of culture, subculture, values, rituals and physical environment in management in higher education. The ethnographic auditor measures the fiscal and operational backbone of an organization within its cultural content. Auditing is a formative evaluation of the management process in the educational institution. Auditing looks for manifestations of meaning, cognition, competence and quality. An auditor has access to all facets of the organization. The auditor evaluates management's functions and adds insight to the operational components of a department. Ethnographic auditing evaluates management on a cultural level of analysis. The evaluator who combines the auditor's concern over resource control with ethnographic or qualitative methods is able to address the more penetrating management issues of higher education. Auditing a university on a cultural level requires attention to both specific practices and underlying systems. Two case studies of a university library and a chemistry department are presented to illustrate ethnographic auditing's contribution to the improvement of management. (BAE)