Management audit of business entities is important especially where business is comparatively small one. Management audit become important to identify those mistakes which could have landed the organization into a shutdown situation.
Internal controls of business entities are assessed through management audit and their effectiveness and relation with existing manner of work is observed. It is a method of evaluation within the business entity and can result in bringing required changes to run business operations on right track.For checking or auditing any work activity, there are three types of methods associated in this.
There are three types of methods associated for checking or auditing of any work activity with it.
It is an apparent checking and involves mostly comparing actual results with certain given characteristics. These characteristics usually form, fit and function etc. and after the process, the output is checked with these characteristics. It cannot judge on the basis of cause-effect relation but is compared just a black or white answer.
The compliance auditing deals with checking the work performed in deep, comparing results with pre-written manuals. It verifies activities performed with the activities required. Compliance auditing results in assurance and quality enhancement of procedural work. MHSS undertakes different areas of compliances audits including new vendor regulatory audits, registration audits etc. for our clients where they need it before entering into big contracts.
Management audit is a systematic examination of decisions taken by the management along with their actions and to analyze the performance. It takes and reviews managerial aspects like organizational objectives, structure, policies, procedures, system and controls, in order to assess the efficiency or performance of the management for the activities of the business entity. management audit evaluates the suitability and effectiveness of controls and challenges underlying rules, methods and procedures.
Management audit assesses the methods and policies of an organization’s management in the administration, tactical and strategic planning, use of resources, and employee and organizational improvements.
Management audit do not check or appraise the individual employee performance but critically evaluate the senior executives as a management team.
For all your Management Audit needs in detail, feel free to contact our experienced staff.