Management audit involves the independent examination of a company's management, operations, and policies to evaluate how well objectives are being met. It identifies strengths and weaknesses, recommends improvements, and helps management better utilize resources and achieve goals. A management audit reviews areas like organizational structure, planning, resource allocation, procedures, and control systems. Its aims include improving efficiency, profitability, and the effective discharge of management responsibilities.

1. Management science
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2. Meaning :-
The Examination review of various policies and action
of the Management on the basis of certain specified objectives.
Definition :-
Management Audit is Independently Examination of
organisation structure, operation function ,Analyzing goals ,plans
,Policies, Activities, weaknesses and Evaluation of earning
capacity of the Management.
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3. To identify the level of achievement of the main objectives of
organisation .
To indentify the defects or irregularities of management
executives .
To ensure that the management is going to achieve the
objectives.
To help the management to do efficient administration of the
operations.
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4. To help management executives in the effective discharge of
their responsibilities.
To suggest to the management the way and mean available to
achieve the objectives.
To improve the profitability of the organisation.
To obtain or utilize the full efficiency of the management.
To help the management executives in the effective discharge
of their duties.
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5. Scope of Management Audit
Management audit will depend upon the objective and
requirement it’s Scope of Management Audit
Briefly Explanation of Review :-
Objective , goals , plans and policies of Management.
The results of various operations department-wise.
The planning process and appraisal of planning and utilization of
finance and human resources.
Physical processes and activities of delegation of authority.
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6. Organistion structure and appraisal of result of such
management decisions.
Rules , regulations and methods fixing responsibility by
management executives.
i.e., systems and procedures of the organisation.
Management office information operations systems and
appraisal of its effectiveness.
Management control Personnel policies system and techniques
followed by management.
Selling and distribution system and appraisal of its
effectiveness.
Operation its the purchasing and productions of there
effectiveness.
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7. Important of Management Audit
Management functions and processes in order to improves its
efficiency.
A change in the method of purchase in beneficial to the
company.
Expected top suggest that change in the system of running the
business would be beneficial to the company.
The success or failure of business or company depends fully on
the quality of management.
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8. Each company wants to minimize the cost of production by
eliminating wastage and utilizing full manpower to make in the
competitive business world.
Banks and financial institutions may require management audit
to find out whether the loan amounts have been properly
utilized or not .
Management audit assists the foreign collaborators to asses the
progress and performance of the management of the concern
with which collaboration has been undertaken.
The management audit is necessary to find out the best method
of improving efficiency.
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9. Role and Purpose of management
Audit
Role of the Management The purpose of management
Auditors is as follows:- audit is manly to inform the
company about the total
Attention to accounting
revenue generated on day,
details
how much the company is
Procedural control owed by the guests both in
Occupancy percentage house and checked out and
Summarize the result of producing operational and
operation management reports. An
Summary of cash , cheque effective management audit
,credit card increases the probability of
correct account settlement.
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10. Advantages of Management Audit
Management audit provides information about strong and weak
point of the management after reviewing policies and programs.
So, it helps to the smooth operation of an organization.
Management audit provides suggestions to the management
which helps to maintain effective management.
Management audit helps the management providing suggestions
to attain goal of an organization.
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11. Disadvantages of Management Audit
Management auditor cannot understand the practical
problems. So, the suggestions provided by them is theoretical
but not practical.
Scope of management audit is vague. So, it does not help to
achieve specific goal.
Generally management give more emphasis on maintaining
books of accounts rather than concentrating on other factors.
So, it consumes time of farsighted management.
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12. Qualification of the management
audit
No qualification have been prescribed
Generally CA
Knowledge of accountancy, financial administration &
management
The get valuable suggestions for improving the management
executives
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13. Difference Between Management
Audit And Statutory Audit
statutory audit is one conducted to meet the particular
requirements of a governmental agency.
Where such audits take place, the scope and audit programs are
set by the governmental body.
Banks, insurance companies, and brokerage firms have statutory
audits. Since the auditor's report must conform to standards
required by the governing agency, the statements and other
financial data generated from these audits may not conform to
Gap.
Audit management is responsible for ensuring that board-
approved audit directives are implemented to company appointed
CA
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14. Benefit of Management Audit
Analyze and understand your company’s financial records.
Identify key areas for improvement in your company.
Assess risks, economy, efficiency and quality.
Evaluate new technology.
Uncover fraudulent or other illegal activities within your
company.
Reinforce and strengthen internal control.
To derive greater value, management may also consider
giving a broader role to internal audit and include elements
of enterprise risk management into the internal audit
charter.
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15. Determine the objective of the report, i.e., identify the problem.
Collect the required material (facts) for the report.
Study and examine the facts gathered.
Plan the facts for the report.
Prepare an outline for the report, i.e., draft the report.
Edit the drafted report.
Distribute the draft report to the advisory team and ask for
feedback and recommendations.
Concentrate on the report structure and matter. Pre-decide the
report writing style. Use vivid structure of sentences.
The report should be neatly presented and should be carefully
documented.
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16. Audit Report Summery
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17. Thank you
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