How is the management audit conducted ?

1. Establishing the objects of an organization- The first job in the management audit is to identify the objectives of the business organization.

2. Evaluation of the organization structure- Next step in the management audit is to evaluate the organization structure. To find out that whether the structure enough to achieve the goals of the organizations.

3. Evaluating the policies of the organization- Evaluating the policies of the organization is very important is very important. Any scope of improvement in it should be reported.

4. Reviewing the actual performance- Auditor should review the actual performance of the various work centers. The performance should be carefully and critically evaluated.

Any scope of the improvement or inefficient working should be reported.

Techniques  for conducting management  audit;

*Examination ; in some cases a management auditor have to conduct an examniation of documents & records

*Inquiry: a management auditor collects most of evidence by asking relevant questions & obtaining answers.

*Confirmation: obtaining written or oral   statements from various persons.

*observation of pertinent activities and conditions

* correlation of information

Administrative procedures are audited internally by the administration through the consistent and continuing to stand on the activity of the facility and is designed to:

1. The first correct mistakes Powell until the continuity of health work

2. to identify the weaknesses and the activity that leads to finding solutions to the health evaluation

3. providing information to the administration as Asahbh and installer for decisions it

4. Identify and evaluate the necessary business control systems

5. compare the various activities the facility by reviewing the costs of each activity and compare these activities together

Thanks for inviting,

Management audit is conducted with an aim to check and verify that whatever policy and procedures are laid down by management are strictly followed. Before conducting the management audit,  auditor and his team has to bear in mind all the  policy and procedures described by management. Auditor have to understand in detail all the  policy and procedures of management this will help him to conduct a valuable audit.

Agree with Mr majied. He gave good and short answer.

It should be clear by now that a management audit is designed to ascertain what supervision knows, what it thinks, and what it feels. Though we like to think that foremen are members of management, they are that segment which is farthest removed from the policy making level. Thus, the flaws in top management will tend to show up on the firing line in exaggerated form, as ineffective supervision, as worker dissatisfaction, as lowered production.

Poor supervision usually results from one or a combination of several simple things:

1. Improper selection of foremen.

2. Inadequate training of foremen.

3. Organizational maladjustment resulting from such things as inconsistencies in regulations or paper work or procedure, deadwood, "sacred cows," bottlenecks, improper organizational balance, and basic inconsistencies in company policy.

4. Absence of a planned and adequate information program of internal communication.

There are some guidelines for management such as memorandum of association, articles, vision & mission statement, SOP, strategy etc. Auditing the performance of the company against those parameters is known as the management audit.