What is a Management Audit?

A management audit is an essential tool that is used to determine the efficiency, functions and accomplishments and achievements of the company. It is also an independent and systematic analysis that evaluates the company’s overall activities and performances.

The main objective of this type of audit is to identify errors in the management activities and also suggest possible changes if needed. It guides the management in managing the operations most efficiently and productively.

In other words, a management audit performs the evaluation and assessment of the management system and information in different departments of the company. It also reviews the system and subsystem, authorization, accountability, procedure, quality of generated data, quality of personnel, etc.

What is the Objective of Management Audit?

• 1) To ensure that human resources and physical facilities are utilized in an optimized way.
• 2) To show the deficiencies in the policies, objectives, planning, and procedures.
• 3) To suggest better operation methods.
• 4) To check the weak points in the organizational structure and internal control system and also by suggesting improvements.
• 5) To assist the management by providing early signs of problems, ways, and means to avoid the same.