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 of 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. With this empowering the best relationship with the outside world. And keeping most proficient association and smooth running inside.
Brief Explanation of Management audit
The prime target of Management Audit is to find imperfections of 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. It helps the administration in dealing with the operations of an undertaking in the most proficient way practicable. Improve efficiency of the management and try ensuring optimum utilization of present resources. The basic flavor, inherent in the idea of management audit, is the assessment of how well the exercises have been arranged. How execution is measured and how effectively these are sorted out to do their duties. It evaluates the performance of the management and gives appraisal if find them efficient. There are also some drawbacks to it. It may make a fear in the brains of the administrators and may check their initiative and innovation. The management auditor may need freedom as it just takes directions from the top management. This involves high cost and it is suitable only for big organizations which can afford its expenses. Management audit basically consist of three stages namely
- Diagnostic Overview,
- In-depth Review, and
- Implementation of Programme.