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A management audit pertains to an in-depth
review of individual parts of a business to ascertain how
they function and interrelate to produce overall results.
When properly executed, such an audit provides the best overview
available of the business dynamics as a single entity.
An audit may be used to evaluate specific functions within
the organization to determine their performance efficiency.
This review considers the unique characteristics of each organization,
adjusts its standard of measurement accordingly and reflects
the specific nature of their corporate culture.
In an era of hypercompetitive business environments, management
audits could mean the difference between business success
and failure. The benefits to be derived are hereunder set
out:
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A systematic identification of areas that affect profitability
with the attendant experience-based solutions for improving
efficiency and effectiveness.
- The development of information to ensure a competitive
advantage.
- The development of management information to provide
guidance in establishing standards in defining goals
and expectations.
- The utilization of analytical tools for evaluating operations,
such as financial ratio, cash flow, break-even and capacity
analyses and more.
- The establishment of procedures for the development
of action plans to achieve improvements in numerous
methods for reducing costs.
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