5 procedures needed for management audit

5 procedures needed for management audit

1. Inquiry:

A management auditor collects most of the evidence required by him by asking relevant questions and obtaining satisfactory answers to these questions. Proper framing of questionnaire is one of the first steps in conducting management audit. The main value of questionnaires lies in the fact that a good question is often a key to uncover a hidden problem.

2. Examination:

In many cases, the management auditor may have to conduct an examination of documents and records. This may be necessary in case of inquiry process yields certain information which needs collaboration or which suffers from internal contradictions.

3. Confirmation:

A management auditor may also obtain written or oral statements

4. Observation:

In many cases the management auditor may have to rely upon his won observation of pertinent activities and conditions in the organisation. A management auditor may prepare organisational charts and flowcharts as a result of his observation of pertinent activities and conditions.

5. Correlation of Information:

The information collected through various techniques has to be correlated so that proper conclusions can be arrived at. The management auditor has to compare the actual performances with the standards laid down.