Railway Accounts Department Examinations

Thursday, August 13, 2020

Management Audit

 

Management Audit | Purpose | Scope | Advantages | Disadvantages


Management Audit


 

What is : Assessment of competency and capability of Organization’s Management in carrying out corporate objectives. 

 

Purpose is: The purpose of Management Audit is not to appraise individual Executive performance, but to evaluate the management team as a whole.

 

Why conducts: Check the effectiveness of Management team in respect to  fulfils the interests of shareholders, industrial relations with staff and uphold good reputation standards.

 

Who conducts:  Independent consultant hired by the Company.

 

Scope:  Narrow one

 

When:  Conducted before mergers, restructurings, bankruptcies, succession planning and also to identify the weaknesses in a company management.

 

How long:  Normally a month or two months. 

 

Mandatory:  No  


Key for MCQ on Management Audit:  


  1. Conducted by an Independent consultant hired by the Company. 

 

  1. Scope is Narrow one.   

 

  1. Duration: One or Two months

 

 

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