Definition of Management audit
The management audit is an assessment method. In which administration can survey how viable the officials and directors of the organization plan, compose, direct and control. How they utilize men, cash, materials, machinery, equipment, and offices to accomplish corporate objectives. It might be more particularly defined similarly to an examination of a business from the highest level to downwards. In order to find out whether sound administration wins all through. This empowers the best relationship with the outside world. And keeping the most proficient association and smooth running inside.
Brief Explanation of Management audit
The prime target of a Management Audit is to find imperfections or irregularities in the area secured by the audit. Recommend conceivable enhancements. It helps management by providing early signs of sickness. anticipate problems and suggest best remedies. Moreover, it helps the administration in dealing with the operations of an undertaking in the most proficient way practicable. Improve the efficiency of the management and try to ensure optimum utilization of present resources. In the idea of management audit, the basic component is the assessment of how effectively exercises are set up. Moreover, it includes measuring execution and using it to sort out their duties effectively.
It evaluates the performance of the management and gives an appraisal if finds them efficient. There are also some drawbacks to it. It may make fear in the brains of the administrators and may check their initiative and innovation. Additionally, the management auditor may need freedom as it just takes directions from the top management. This also involves high cost and it is suitable only for big organizations which can afford its expenses. Management audit basically consists of three stages namely
- Diagnostic Overview,
- In-depth Review, and
- Implementation of Programme.