The development of a structured method of providing administrative experience for hospital pharmacy residents, using internal audit techniques, is described. Residents were assigned topics to investigate in the administrative area of hospital pharmacy early during their two-year, academically affiliated residency. They were expected to review and evaluate the topic critically using internal audit techniques; written and oral reports were presented to the administrative staff. Residents were able to complete the audits while attending classes as part of their academic experience. As a result of performing the audits, residents have learned administrative skills in problem identification, assessed their personal competency by reviewing major components of contemporary practice, learned accepted standards of pharmacy practice, and developed skills in making improvements in conformity with quality assurance standards. This program has been incorporated as an integral part of the residency program.