Management Audit is the methodical and detached assessment, study and evaluation of managements in general performance. The main objective of this Audit is to find defects of irregularities in the areas enclosed by the audit and to recommend probable improvements. It is similar to the operational audit in several aspects. Its main objective is to assist all levels of management.
Objectives of Management Audit
Main objectives of the management audit are as follows:
(1) Management audit aims to assess the efficiency at all levels of management and implementation of policies. And improve profit-earning capacity, social objectives, etc. to attain organizational goals.
(2) To formulate the goal of an organization. And ensure optimum utilization of human resources and available physical facilities.
(3) To ensure the fulfillment of goals. And suggest improved methods of operations. Also analyses the different ways to overcome the inefficiencies or weaknesses.
(4) It examines and evaluates the plans and policies and judge whether planning and policies are properly implemented.
(5) To help management to improve the activities and procedures. And point out deficiencies in objectives, policies, procedures, and planning.
(6) To help the management to increase profitability by giving remedies to maximize the organization’s resources in an efficient way.
(7) To help all the members of management to make the effective discharge of their duties. And help management by providing early signals of sickness, ways, and means to avoid the same; and
(8) To help in the improvement of profits. And point out weak links in organizational structure and in the internal control system and suggesting improvements.
(9) To evaluate the ways for improving the management efficiency and to select the best are the some of the objectives of management audit.
(10) To anticipate problems and suggest remedies to solve them in time. And reveal any irregularity or defect in the process of management and suggest an improvement.