This document provides an overview of management audits. It defines a management audit as a systematic examination and appraisal of management's overall performance. The aims are to improve efficiency, ensure optimal resource use, identify deficiencies, and suggest improvements. Key differences from a cost audit are that management audits evaluate objectives/actions, require knowledge of management/production, and have no statutory obligations. The process involves identifying objectives, evaluating performance against objectives, and providing suggestions. The scope includes evaluating management efficiency, reviewing policy implementation, appraising performance, and recommending improvement areas. Advantages include aiding decisions and utilizing resources effectively. Disadvantages are the high cost for large organizations only. Operational aspects examined include objectives, production, sales,
auditing is an examination of accounting
records undertaken with a view to establish whether they correctly and completely reflect the transactions to which they relate.
There are various types of Audit which are mentioned below: -
Based on Organizational Structure
Statutory Audit
Non-Statutory Audit
Based on Scope
Complete Audit
Partial Audit
Based On Time
Continuous Audit
Final Audit
Interim Audit
Based on Object
Special Audit
Cost Audit
Management Audit
Internal Audit
Social Audit
Tax Audit
Proprietory Audit
Statutory Audit is compulsory audit prescribed under statute i.e. law. Statutory audit is conducted after preparation of final accounts.
Non-Statutory Audit
Non-Statutory Audit is voluntary audit. They are not compulsory under any law.
Complete Audit
In this type of audit, the auditor is required to check each and every transaction recorded in the books of accounts.
Partial Audit
In Partial audit, the auditor is not required to examine all the books of accounts.
Continuous Audit
Continuous Audit means an audit at regular intervals throughout the accounting year.
Final Audit
Generally, it starts after the close of the financial period.
Interim Audit
Interim Audit is an audit conducted in between the annual audits
Special Audit
Central Government has power to order a special audit of the accounts of a company for a specific period.
Cost Audit
It is a type of audit which involves verification of cost records maintained by the organization
Management Audit
Management audit involves examines of the plans, policies, procedure, method and strategies and evaluates the performance of management with a view to improve organizational effectiveness. It does not look into the past, present but also in the future.
Internal Audit
Internal Auditing is a continuous, critical review of financial and other operating activities by a staff of auditors, functioning as full time salaried employees.
auditing is an examination of accounting
records undertaken with a view to establish whether they correctly and completely reflect the transactions to which they relate.
There are various types of Audit which are mentioned below: -
Based on Organizational Structure
Statutory Audit
Non-Statutory Audit
Based on Scope
Complete Audit
Partial Audit
Based On Time
Continuous Audit
Final Audit
Interim Audit
Based on Object
Special Audit
Cost Audit
Management Audit
Internal Audit
Social Audit
Tax Audit
Proprietory Audit
Statutory Audit is compulsory audit prescribed under statute i.e. law. Statutory audit is conducted after preparation of final accounts.
Non-Statutory Audit
Non-Statutory Audit is voluntary audit. They are not compulsory under any law.
Complete Audit
In this type of audit, the auditor is required to check each and every transaction recorded in the books of accounts.
Partial Audit
In Partial audit, the auditor is not required to examine all the books of accounts.
Continuous Audit
Continuous Audit means an audit at regular intervals throughout the accounting year.
Final Audit
Generally, it starts after the close of the financial period.
Interim Audit
Interim Audit is an audit conducted in between the annual audits
Special Audit
Central Government has power to order a special audit of the accounts of a company for a specific period.
Cost Audit
It is a type of audit which involves verification of cost records maintained by the organization
Management Audit
Management audit involves examines of the plans, policies, procedure, method and strategies and evaluates the performance of management with a view to improve organizational effectiveness. It does not look into the past, present but also in the future.
Internal Audit
Internal Auditing is a continuous, critical review of financial and other operating activities by a staff of auditors, functioning as full time salaried employees.
IT CONTAINS BASICS OF AUDIT AND AUDITOR
MEANING OF AUDIT, DEFINITION, ORIGIN AND DEVELOPMENT, TYPES OF AUDIT, DIFFERENCE BETWEEN ACCOUNT AND AUDIT, AUDITOR
IT WILL HELP THE STUDENTS TO UNDERSTAND THE BASIC OF AUDIT.
The word, ‘Audit’ is derived from the Latin term “audire” which means to hear. Audit is a thorough review of a department’s records and reports, in order to verify that assets and liabilities are properly recorded on the balance sheet and all profits and losses are properly assessed. To meet the objectives of Audit, verification of revenue, expenditure, bank deposits, bank reconciliations, accounts payable and accounts receivable, cash, loans and advances, disbursement and regular transactions is very necessary.
A. Primary Objectives of Audit
B. Subsidiary Objectives of Audit
A. Primary Objectives of Audit
The main objectives of Audit are known as primary objectives of Audit. They are as follows:
Checking arithmetical accuracy of books of accounts, verifying posting, costing, balancing etc.
Verifying the authenticity and validity of transactions.
Checking the proper distinction of capital and revenue nature of transactions.
Confirming the existence and value of assets and liabilities.
Verifying whether all the statutory requirements are fulfilled or not.
Proving true and fairness of operating results presented by income statement and financial position presented by balance sheet.
A. Primary Objectives of Audit
The main objectives of Audit are known as primary objectives of Audit. They are as follows:
Checking arithmetical accuracy of books of accounts, verifying posting, costing, balancing etc.
Verifying the authenticity and validity of transactions.
Checking the proper distinction of capital and revenue nature of transactions.
Confirming the existence and value of assets and liabilities.
Verifying whether all the statutory requirements are fulfilled or not.
Proving true and fairness of operating results presented by income statement and financial position presented by balance sheet.
B. Subsidiary Objectives of Audit:-
Detection and prevention of errors:
Errors of principle
Errors of omission
Errors of commission
Compensating errors
Errors of Duplication
Presentation on Budget, budgeting and budgetary control..
Contents-
1) Budgeting [characteristics]
2) Budgetary control
3) Difference in budget, budgeting, budgetary control
4) Essentials in budgetary control
5) Requisites for budgetary control system
6) Merits & limitations
7) Zero-based budgeting
8) Difference in Traditional & Zero based budgeting.
This presentation explains about the meaning as well as various types of audit report which an auditor has present in his books of accounts for the sake of the company's shareholders and various other groups.
This ppt covers the following points :-
1. introduction of management accounting
2. Definition of management accounting
3. Nature, objective, tools and techniques, significance and limitations of management accounting
4. difference between financial and management accounting and also includes difference between cost and management accounting
5. management accountant and its roles
6. Management accounting organisation
IT CONTAINS BASICS OF AUDIT AND AUDITOR
MEANING OF AUDIT, DEFINITION, ORIGIN AND DEVELOPMENT, TYPES OF AUDIT, DIFFERENCE BETWEEN ACCOUNT AND AUDIT, AUDITOR
IT WILL HELP THE STUDENTS TO UNDERSTAND THE BASIC OF AUDIT.
The word, ‘Audit’ is derived from the Latin term “audire” which means to hear. Audit is a thorough review of a department’s records and reports, in order to verify that assets and liabilities are properly recorded on the balance sheet and all profits and losses are properly assessed. To meet the objectives of Audit, verification of revenue, expenditure, bank deposits, bank reconciliations, accounts payable and accounts receivable, cash, loans and advances, disbursement and regular transactions is very necessary.
A. Primary Objectives of Audit
B. Subsidiary Objectives of Audit
A. Primary Objectives of Audit
The main objectives of Audit are known as primary objectives of Audit. They are as follows:
Checking arithmetical accuracy of books of accounts, verifying posting, costing, balancing etc.
Verifying the authenticity and validity of transactions.
Checking the proper distinction of capital and revenue nature of transactions.
Confirming the existence and value of assets and liabilities.
Verifying whether all the statutory requirements are fulfilled or not.
Proving true and fairness of operating results presented by income statement and financial position presented by balance sheet.
A. Primary Objectives of Audit
The main objectives of Audit are known as primary objectives of Audit. They are as follows:
Checking arithmetical accuracy of books of accounts, verifying posting, costing, balancing etc.
Verifying the authenticity and validity of transactions.
Checking the proper distinction of capital and revenue nature of transactions.
Confirming the existence and value of assets and liabilities.
Verifying whether all the statutory requirements are fulfilled or not.
Proving true and fairness of operating results presented by income statement and financial position presented by balance sheet.
B. Subsidiary Objectives of Audit:-
Detection and prevention of errors:
Errors of principle
Errors of omission
Errors of commission
Compensating errors
Errors of Duplication
Presentation on Budget, budgeting and budgetary control..
Contents-
1) Budgeting [characteristics]
2) Budgetary control
3) Difference in budget, budgeting, budgetary control
4) Essentials in budgetary control
5) Requisites for budgetary control system
6) Merits & limitations
7) Zero-based budgeting
8) Difference in Traditional & Zero based budgeting.
This presentation explains about the meaning as well as various types of audit report which an auditor has present in his books of accounts for the sake of the company's shareholders and various other groups.
This ppt covers the following points :-
1. introduction of management accounting
2. Definition of management accounting
3. Nature, objective, tools and techniques, significance and limitations of management accounting
4. difference between financial and management accounting and also includes difference between cost and management accounting
5. management accountant and its roles
6. Management accounting organisation
Unit 5 CSM: Strategic Evaluation and ComtrolDayanand Huded
The chapter comprises of Overview of Strategic Evaluation; Strategic Control; Techniques of Strategic Evaluation and Control. Evaluation of Strategic Alternatives - Product Portfolio Models, BCG Matrix, GE Matrix, Gap Analysis; Strategic Control System.
Strategic evaluation and control is the final phase in the process of strategic management. Its basic purpose is to ensure that the strategy is achieving the goals and objectives set for the strategy. It compares performance with the desired results and provides the feedback necessary for management to take corrective action.
According to Fred R. David, strategy evaluation includes three basic activities
(1) examining the underlying bases of a firm’s strategy,
(2) comparing expected results with actual results, and
(3) taking corrective action to ensure that performance conforms to plans. Sometime, the best formulated strategies become obsolete (outdated) as a firm’s external and internal environments change.
Strategic control is a type of “steering control”. We have to track the strategy as it is being implemented, detect any problems or changes in the predictions made, and make necessary adjustments. This is especially important because the implementation process itself takes a long time before we can achieve the results.
Strategic control is like an alarm long before the calamity can happen.
Operational control is the process of ensuring that specific tasks are carried out effectively and efficiently. The operational control aims at evaluating the performance of the organization. Most of the control system in organization are operational in nature. Some examples of operational control are : Budgetary control, Quality control, Inventory control, Production Control, Cost control etc.
Portfolio Model is a technique used to analyse organisations in relation to their environments
Portfolio (set, collection, assortment, range, group)
A business Portfolio may be any collection of brands/products, markets, branches /divisions, income generating assets, etc.
PA is usually applied to firms with multiple SBUs (more than one product/services, customer categories, markets , divisions)
Helps managers in taking decisions regarding which SBUs to allocate more or less resources to at a given strategic point in time
After portfolio analysis firm makes an informed strategic choice e.g.
To have a balanced portfolio (minimize risk and maximize return) of all portfolios
To actively deploy a retrenchment strategy
the presentation is regarding controlling techniques used in all the fileds where management roots itself. From basic to advanced controlling techniques we have tried to make the presentation elaborate and easy to understand
In the ever-evolving business landscape, staying ahead of the competition is paramount. To achieve this, companies must regularly assess and optimize their internal processes and management practices. This article delves into the concept of management audit, specifically focusing on its relevance and significance in management audit in Janakpuri, a bustling commercial hub in Delhi, India.
https://nikhilhurria.sastiwebsite.com/index.php/2023/09/13/management-audit-in-janakpuri/
Unit 8 - Information and Communication Technology (Paper I).pdfThiyagu K
This slides describes the basic concepts of ICT, basics of Email, Emerging Technology and Digital Initiatives in Education. This presentations aligns with the UGC Paper I syllabus.
Ethnobotany and Ethnopharmacology:
Ethnobotany in herbal drug evaluation,
Impact of Ethnobotany in traditional medicine,
New development in herbals,
Bio-prospecting tools for drug discovery,
Role of Ethnopharmacology in drug evaluation,
Reverse Pharmacology.
The Indian economy is classified into different sectors to simplify the analysis and understanding of economic activities. For Class 10, it's essential to grasp the sectors of the Indian economy, understand their characteristics, and recognize their importance. This guide will provide detailed notes on the Sectors of the Indian Economy Class 10, using specific long-tail keywords to enhance comprehension.
For more information, visit-www.vavaclasses.com
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
We all have good and bad thoughts from time to time and situation to situation. We are bombarded daily with spiraling thoughts(both negative and positive) creating all-consuming feel , making us difficult to manage with associated suffering. Good thoughts are like our Mob Signal (Positive thought) amidst noise(negative thought) in the atmosphere. Negative thoughts like noise outweigh positive thoughts. These thoughts often create unwanted confusion, trouble, stress and frustration in our mind as well as chaos in our physical world. Negative thoughts are also known as “distorted thinking”.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
2. Contents
• Meaning and Definition of Management Audit
• Aims and Objectives of Management Audit
• Difference between Cost Audit and Management Audit
• Process of Management Audit
• Scope of Management Audit
• Advantages & Disadvantages of Management Audit
• Operational Aspects of Management Audit
3. Meaning and Definition of Management Audit
Management Audit is a form of appraisal of the total performance of the
management by means of an objective and comprehensive examination of the
organizational structure, its components, its plans and policies, methods of
process or operations and controls and its use of physical and human resource.
According to Churchil and Cyert, “Management audit is performed with the
object of examining the efficacy of the information control system,
management and management procedures towards the achievement of
enterprise goals.”
4. Aims and Objectives of Management Audit
• Improve efficiency of the
management.
• Ensure optimum utilization of
resources.
• Point out deficiencies.
• Suggest improved methods of
operations.
• Find out weak points in internal
control system.
• Help management by providing
early signals of sickness.
• Anticipate problems and suggest
remedies.
• Appraise managerial performance.
• Evaluate plans and policies.
• Facilitates performance evaluation
of human resources at every level.
5. Difference between Cost Audit and Management Audit
BASIS COST AUDIT MANAGEMENT AUDIT
Meaning It is a verification of cost records to
measure the internal efficiency of a
business.
It is intended to develop the relationships
with the outside world and internal efficiency
of a business.
Objectives The cost auditor checks the cost
accounting records.
The management auditor investigates
objectives and actions of the management.
Requisite Qualification The cost auditor should be a person
with the requisite qualification to
conduct the cost audit.
The management auditor may be a person
having good knowledge of the management
control, production planning and control etc.
Statutory Obligation The cost audit is made compulsory
and statutory in many organizations.
The management audit is not a statutory
obligation for any concern.
Tenure It is a program of one year and the
report is to be submitted every year.
It covers a wide area having its scope of all
the management activities.
Auditor Only independent Chartered
Accountant or Cost Accountant can
perform the work of cost audit.
It can be conducted by any independent
person having good knowledge of
management.
Report To submit a report under cost audit,
the time limit is fixed by the statute
under which it is conducted.
No time limit can be fixed for submission of
the report under management audit.
7. SUGGESTIONS AND REVIEW
EVALUATION OF PERFORMANCE
Evaluation of the organization structure
BREAK-DOWN THE OBJECTIVES
IDENTIFY THE OBJECTIVES
8. Scope of Management Audit
• Evaluate the efficiency management- Management audit evaluate
and appraise the efficiency of the management at all levels.
• Implementation of principles and policies of the management-
Management audit review whether principles and policies formulated
by the management have been successfully implemented or not.
9. • Management Appraisal- Management audit evaluates the performance of the
management and if find efficient, appraise the management.
• Recommend suggestions for improvement – It gives suggestions for
improvement in the areas e.g. Production, sales, purchase, finance, HR,
administrations etc.
Scope of Management Audit (cont.)
10. Advantages of Management Audit
• Management audit helps in decision making areas such as make or
buy, closing down of an unit, acquisition of a business, etc.
• Management audit suggest ways to utilize the resources of the
organization effectively.
• It helps in setting up an organizational framework to implements the
plans.
11. Disadvantages of Management Audit
• Management audit involves high cost and it is suitable only to big
organizations.
• The management auditor may lack independence and may simply
take instructions from the top management.
12. Operational Aspects of Management Audit
• Objectives and aims of organization :- The management auditor
should study the aims and objectives of the organization.
• Production:- Beyond the area of financial accounting the
management auditor should have a through knowledge of production
techniques and various plans and systems like costing system.
13. Operational Aspects of Management Audit(cont.)
3. Sales and distribution:- The auditor is concerned with the basic
requirement of selling section. In a business information must be
obtain as to sales on the market as a whole and the effect of
changing in price, or manufacring over a period of time.
4. Operations:- He should ascertain whether there are defects in the
working in the organization in regard to the manufacring process
and how the system can improved to ensure maximum production.