management audit
TRANSCRIPT
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Management science
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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To identify the level of achievement of the main objectives oforganisation .
To indentify the defects or irregularities of managementexecutives .
To ensure that the management is going to achieve theobjectives.
To help the management to do efficient administration of theoperations.
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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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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.
Scope of Management Audit
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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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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.
Important of Management Audit
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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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Role of the Management
Auditors is as follows:-
Attention to accounting details
Procedural control
Occupancy percentage
Summarize the result of operation
Summary of cash , cheque ,credit card
The purpose of managementaudit is manly to inform thecompany about the totalrevenue generated on day,how much the company isowed by the guests both inhouse and checked out andproducing operational andmanagement reports. Aneffective management auditincreases the probability ofcorrect account settlement.
Role and Purpose of management
Audit
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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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Management auditor cannot understand the practicalproblems. So, the suggestions provided by them is theoreticalbut not practical.
Scope of management audit is vague. So, it does not help toachieve specific goal.
Generally management give more emphasis on maintainingbooks of accounts rather than concentrating on other factors.So, it consumes time of farsighted management.
Disadvantages of Management Audit
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No qualification have been prescribed
Generally CA
Knowledge of accountancy, financial administration & management
The get valuable suggestions for improving the management executives
Qualification of the management
audit
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statutory audit is one conducted to meet the particularrequirements of a governmental agency.
Where such audits take place, the scope and audit programs areset by the governmental body.
Banks, insurance companies, and brokerage firms have statutoryaudits. Since the auditor's report must conform to standardsrequired by the governing agency, the statements and otherfinancial data generated from these audits may not conform toGap.
Audit management is responsible for ensuring that board-approved audit directives are implemented to company appointedCA
Difference Between Management
Audit And Statutory Audit
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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.
Benefit of Management Audit
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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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Audit Report Summery
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Thank you
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