Examine the policies of management

The statutory auditor is not required to examine the policies of management and their implementation or whether any improvement in the efficiency of management can be made. In these days a report on all these matters is very important to business. The management auditors are appointed to advise the management on the various matter related to management. These people examine the various aspects of management and evaluate the actual performance by comparing it with predetermined standards. They advise management on the matter relating to performance of various departments as well as of the organization as a whole.

Steps in management audit

Reviewing of operative objective to ensure that they are stated in specific terms and to assess whether these are helpful to achieve the desired results.

• On the basis of overall objective, the goals and plans of different department are developed. 
• Examine organizational structure to see whether it suits to achieve organizational goal.
•  Review performance of each function and department of the management by comparing it with the objectives. 
• In the end, a report should be prepared suggesting improved cause of action.