5 Steps Involved in the Management Audit are given below:

Management audit is a complex task closely linked with the process of management. It usually involves the following steps:

1. Identification of the objectives of the organisation. Sometimes the objectives are stated in specific terms but are most cases they remain undefined. It is important that the objectives are clearly perceived and identified.

2. The overall objectives of the organisation are to be broken up into detailed targets and plans for various segments.


3. The organisational structure is to be reviewed to assess whether it can effectively fulfill die overall objectives and the detailed targets. If possible, specific responsibility centres may be identified in the organisation.

4. The performance of each functional area or responsibility center is to be examined in many cases the performance can be expressed in quantitative terms. It should be compared with the objectives and targets.

5. On the basis of the above examination, realistic course of action is. to be suggested. A motivation system can be operated whereby indentures can be given to employees.