Management audit (m.s)

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1. DIPUL MANDOLE Pankaj Patil Chatan More Management audit By 22/09/2012 1 Management science

2. 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. Meaning And Definition 22/09/2012 2 Management science

3. To identify the level of achievement of the main objectives of organisation . To indentify the defects or irregularities of management executives . To ensure that the management is going to achieve the objectives. To help the management to do efficient administration of the operations. Objectives of management audit 22/09/2012 3 Management science

4. 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. 22/09/2012 4 Management science

5. 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 22/09/2012 5 Management science

6. 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. 22/09/2012 6 Management science

7. 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 22/09/2012 7 Management science

8. 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. 22/09/2012 8 Management science

9. 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 management audit is manly to inform the company about the total revenue generated on day, how much the company is owed by the guests both in house and checked out and producing operational and management reports. An effective management audit increases the probability of correct account settlement. Role and Purpose of management Audit 22/09/2012 9 Management science

10. 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. 22/09/2012 10 Management science

11. Management auditor cannot understand the practical problems. So, the suggestions provided by them is theoretical but not practical. Scope of management audit is vague. So, it does not help to achieve specific goal. Generally management give more emphasis on maintaining books of accounts rather than concentrating on other factors. So, it consumes time of farsighted management. Disadvantages of Management Audit 22/09/2012 11 Management science

12. 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 22/09/2012 12 Management science

13. statutory audit is one conducted to meet the particular requirements of a governmental agency. Where such audits take place, the scope and audit programs are set by the governmental body. Banks, insurance companies, and brokerage firms have statutory audits. Since the auditor's report must conform to standards required by the governing agency, the statements and other financial data generated from these audits may not conform to Gap.  Audit management is responsible for ensuring that board-approved audit directives are implemented to company appointed CA Difference B etween Management A udit A nd S tatutory A udit 22/09/2012 13 Management science

14. 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 22/09/2012 14 Management science

15. 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. Reports for Managerial E ffectiveness 22/09/2012 15 Management science

16. Audit Report Summery 22/09/2012 16 Management science

17. Thank you 22/09/2012 17 Management science