Management Audit

Management Audit is an assessment of methods and policies of an organization's management in the administration and the use of resources, tactical and strategic planning, and employee and organizational improvement.

Management audit, as its name signifies, attempts to evaluate the performance of various management processes and functions. It is an audit to examine, review and appraise the various policies and actions of the management on the basis of certain objectives standards.

Management audit helps in decision making areas such as make or buy, closing down of an unit, acquisition of a business, etc. 2. It also helps in assessing the efficiency of the executives. It serves as a moral check on the executives.

Management audit is a method of independent and systematic evaluation of the management activities at .all levels of management to ascertain the functions, efficiency and achievement of' the management (i.e. policies) as compared to standards set by the company.