Management audit or operational audit is an independent and objective assessment of the effectiveness of managers and the corporate structure in the achievement of entities’ objective and policies.
Why it Matters?
A management audit is conducted to:
• Improve efficiency by removing unnecessary activities
• Assess the appropriate level of service for an entity
• Identify cost savings
• Identify opportunities to enhance revenue
How does it work?
A management base audit would take the following steps:
• A review of existing policies and procedures
• A general review of workloads, work methods, and work flows
• An evaluation of processes
• A review of management practices
• A review of resource utilization
• A detailed cost analysis