Management Audit

Management Audit helps enterprises to identify the weaknesses and inefficiencies in different functional areas, such as production, sales, finance etc. and to analyses the different ways to overcome the inefficiencies and weaknesses. It also helps in assessing the efficiency of the executives also it serves as a moral check on the executives.

The basic objectives of management audit are

To identify the level of achievement of the main objectives of the organisation.

To identify the defects or irregularities of management executives.

To ensure that the management is going to achieve the objectives.

To help the management to do efficient administration of the operations.

To help the management executives in the effective discharge of their responsibilities.

To suggest to the management the ways and means available to achieve the objectives.

To improve the profitability of the organisation.

To obtain or utilise the full efficiency of the management.

To help the management executives in the effective discharge of their duties.

The basic objectives of management audit are

To find the level of achievement of strategies, goals and objectives

To find the suitability of the organisation structure to the organisational strategies

To observe the degree and direction of utilisation of various resources in tune with the organisational strategies

To identify the deviations against the set standards or the benchmarks of the industry

To suggest the measures to correct the deviations, if any and to improve the management system

To help the management in improving the execution aspect of policies, objectives etc.