Management Audit, Targets, Auditing Program, Difficulties in conducting audits, Benefits

A management audit is an investigation and evaluation of a company's management's competencies and skills in achieving organizational objectives. The aim of a management audit is not to assess individual executive performance but to assess the efficacy of the management team to work in the interests of shareholders, maintain good relationships with employees and uphold reputational standards.

Targets

Defining effective tactics

The team must ensure the management's ability that it has adequate plans to acquire the information needed for effective decision-making, again the team always ensures that the data gathered is appropriate to achieve the organization's goals without any hassles. The tactics are typically the secret to attaining the objectives of any form of government.

Implementation of the internal controls needed

The audit team will check the efficacy of the organization's internal control in addressing the management deficiencies. Unless the internal controls implemented are not adequately successful it can lead to unnecessary process problems. Example: First, an accountant verifies the documentation in a company's reimbursement scheme, and then the Senior Accountant must check the same documentation. Finally, the cashier pays the cash, ensuring a triple check on the transaction. Here the internal regulation is so powerful it prevents any cash abuse.

Collection of On-time Reports

The management audit team will confirm that the management has placed sufficient control in place to produce and deliver on time the reports. The generation of reports can be called an important method for detecting errors. This may also often serve as a watchdog for monitoring the bigger mistakes during the process. In addition , the audit reports will periodically boost the management 's productivity for progress.

Auditing Program

Good personnel appointment

A responsible individual should be named in the audit process for the implementation of the program under a management audit. Proper in the sense that to carry out the audit plan without ambiguities, he has to be professionally trained, competent, and experienced.

Creation of an audit programme

1. Data collection needed
2. An assessment of policies and procedures
3. Tracking the Strategy
4. Book search and other related documentation
5. Investigate with the Data available
6. Personnel / department inquiries
7. Observing internal reviews
8. Check monitoring of the transactions and their performance
9. Evaluation and analysis of the scientific methods (if necessary)
10. Preparing strategies for the studies

Fitness Routine

Until carrying out the audit proper training must be given to the team. Example: Management Audit on Construction Industries required a particular form of evaluation skills and techniques that must be given prior to implementation.

Time Issue

Every audit program plan needs to be conducted on a specific schedule to achieve the exact results of it. Example: watching the manufacturing process will contribute to the identification of normal and abnormal waste during the process.

Audit rates

An audit will periodically be performed to eliminate the mistakes that occur during the decision-making process. Frequencies can be decided on the basis of the nature of the business and also considered with the length of the business understanding and its transactions

Solutions reports

The audit report usually consists of the errors that interrupt the management to make the right decisions. The team should provide their results along with the solutions required to solve the problems. Every report will give a detailed overview of its future implications.

Difficulties in conducting audits

Investment and Technology Lack

Generally speaking, the suggestions may involve high investments on 4 M resources such as Men, Machinery, Material, or Money, which will be an issue for most of the organisation. Occasionally, a technical upgrade can cause the classical method to alter. Still, the organization's management or staff may have trouble undergoing the new or needed updates.

Lack of management support for the change

For many reasons the management of the organization may have some trouble changing from their classical process to the latest.

Staff conduct is a challenge often implementing the audit plan because at the time of meetings , interviews, or inquiries, they can avoid presenting the actual information for audit. They use to believe their errors will come out during the audit process if they have all the information required for the audit.

Tackling top management

In some cases, it's also an concern where senior management will be against the audit process.

Benefits

1. Proper plan Planning and training for attaining the objectives.
2. Proper positioning of internal controls to efficiently take decisions;
3. Improvising the decision-making process for the management;
4. To overcome the Leadership shortcomings.
5. Deploy adequate human capital.
6. Error correction with the minimal cost or less damage;
7. Avoid excessive resource wastage such as people, resources, money & computer.
8. The findings are prompt and accurate.