The concept of management audit is a new concept. Especially where business is comparatively smaller one, management audit become important in order to explore those mistakes that could have landed the organization into a shutdown situation.
- Management Audit offers assessment of controls and their effectiveness and relation with existing manner of work. It can be said that they are a vital part of Internal Audit. Management Audit is fruitful in way that these are methods of evaluation within the company and can result in bringing the required change.
- For checking or auditing any work activity, there are three types of methods associated in this.
Inspection is an apparent checking, mostly comparing results with certain given characteristics. These characteristics are usually form, fit and function etc. and after the process, the output is either having those characteristics or it doesn't. It cannot judge on the cause-effect relation but just a black or white answer.
This deals with checking work in deep, comparing results with pre- written manuals. It verifies activities performed and activities required. Compliance Audit mostly results in assurance and quality enhancement of procedural works. We undertake registration audits, new vendor regulatory audits etc. for our clients where they need it before entering into big contracts.
It is a systematic examination of decisions and actions of the management and to analyze the performance. It reviews managerial aspects like organizational objective, policies, procedures, structure, control and system in order to check the efficiency or performance of the management over the activities of the Company. Management Audit stresses on results, evaluates the effectiveness and suitability of controls and challenges underlying rules, procedures and methods.
It assesses methods and policies of an organization's management in the administration and the use of resources, tactical and strategic planning, and employee and organizational improvement.
Management Audits do not check or appraise individual employee performance, they critically evaluate the senior executives as a management team.
For all your Management Audit needs in detail, feel free to contact our experienced staff.