Concept Of Management Audit
Management audit is an emerging concept of auditing. It has been originated from America. Management audit is an act of evaluation of all the activities of all the departments with a view to provide appropriate suggestions to the management to help their work. In other words, management auditing is a future oriented task which evaluates timely in all the levels of management like production management, sales management etc. The main objective of management audit is to improve the profit earning capacity, work of management, objectives of program, social objectives and human resource development so that organizational goal can be easily attained. It refers to the existence of control system, compliance of rules and regulations, process of managerial decisions etc.
Functions Of Management Audit
Management audit is a difficult and complex task. It performs the following functions:
1. Management audit identifies the objectives of an organization if such objectives are not set up.
2. Management audit allocates the overall objectives of an organization in small parts.
3. Management audit reviews the structure of organization and asset of the organization and decides whether goals can be obtained or not.
4. Management audit examines all the scope of work and liability centers.
5. Management audit provides valuable suggestions to the management after the evaluation of all above facts.
Objectives Of Management Audit
Main objectives of management audit are as follows:
1. To formulate the goal of an organization.
2. To ensure the fulfillment of goals.
3. To help management to improve the activities and procedures.
4. To help all the members of management to make effective discharge of their duties.
5. To help in the improvement of profits.