Management Audits

A management audit may be defined as an enquiry into the advisability of any of the policies of the board of directors in furthering the objectives of the business as defined in the memorandum and /or into the efficiency with which they are securing the execution of the policies Some of the areas which might be subject of the management audit enquiry include:

1. The objectives of the business: are these objectives right? Are the objectives being pursued and met?
2. The relationship of the business with shareholder, investors and the financial markets
3. The standing of the company with the public, customers, suppliers and other members of the public
4. Relations with trade unions and the employees, labour turnover, health concerns an safety matters and issues, training policies etc
5. Moral of employees
6. Financial ratios both the trend and industrial
7. Financial control
8.  Information flow – is the flow of information adequate or not