Short Paragraph on Management Audit
This attempts to evaluate the performance of various management processes and functions. It is an audit to examine, review and appraise various policies and actions of the management on the basis of certain objective standards. It goes beyond the conventional audit which involves a scrutiny of financial transactions and the books of account. It is a comprehensive and a critical review of all aspects of management. The Federal Financial Officers’ Institute in Canada defined management audit as, “A systematic independent appraisal activity within an organisation for a review of the entire departmental operations as a service to management. The overall objective of operational auditing is to assist all levels of management in the effective discharge of their responsibilities by furnishing them with objective analyses, appraisals, recommendations and pertinent comments concerning the activities reviewed.”