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Audit & Assurance Service /

Management Audit

The goal of a management audit is to identify the weaknesses of the management team. The audit is most often carried out on a companywide basis but it can also be isolated to certain business segments. The goal is always to find out how effective management is and where it can improve.

Areas that a management audit will cover but are not limited to include human resources, marketing, research and development (R&D), budgeting, operations, finance, information systems, and corporate structure.

The management audit will consist of interviews with management and employees, an analysis of financial statements and performance, a study of a company’s policies and procedures, an evaluation of training programs, the hiring process, and many other areas within an organization.

Management

Audit

When the audit is complete, the external audit company will not only provide its findings but will most often provide an entire plan for the board of directors to implement so that the company can operate at an optimal level.

In contrast to an internal audit, which is carried out by the internal audit department of a company, a management audit is conducted by outside companies with specific expertise.

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