Archive for the 'Management Audit' Category

Mangement Audit and its objects.

Management audit is a comprehensive and complete examination of all managerial functions and the effective use of their total resources in achieving the goals of an organization.

According to Taylor and Perry “Management auditing is a method to evaluate the efficiency of management at all levels throughout the organization in order to ascertain whether sound management prevails throughout, and also to report on its effectiveness and on its improvement”.

Management audit aims at finding out the defects and irregularities present in the business organization and trying to remove them. So that the goals of the business organization can be achieved most efficiently and effectively.


1. To point out the defects and irregularities present in the system and also to suggest improvements in it.

2. To help the organization to achieve in working.

3. To help in achieving the ultimate goal of the organizational activity most efficiently,

4. To remove the wastage and ultimate and leakage present in the system.

Process of Management Audit

1. Establishing the objects of organization- The first job in the management audit is to identify the objectives of the business organization.

2. Evaluation of the organization structure- Next step in the management audit is to evaluate the organization structure. To find out that whether the structure enough to achieve the goals of the organizations.

3. Evaluating the policies of the organization- Evaluating the policies of the organization is very important is very important. Any scope of improvement in it should be reported.

4. Reviewing the actual performance- Auditor should review the actual performance of the various work centers. The performance should be carefully and critically evaluated.

Any scope of the improvement or inefficient working should be reported.

5. Report – On the basis of the above steps, auditor should prepare a report and
submit to the appointing authority. The report should point out all the weak and inefficient points present in the organization.