Management audits can provide us with the organisation with numerous advantages and executive-level supervision. The variations are growing more frequent and more abrupt as the market is getting more dynamic. Thus, it is of utmost importance to periodically evaluate and assess the efficacy, performance, productivity, profitability and competitiveness of the concerned business. Management Audit services endeavours to offer detailed, comprehensive, unbiased, credible and precise evaluations on the effectiveness, performance, competitiveness, diligence and ability of the organisation to respond to macro-environmental changes. It attempts to evaluate the performance of various management processes and functions. It examines, reviews and appraises the various policies and actions of different levels of the management on the basis of certain objective standards.
Management evaluations by an unbiased third party can ensure a real, genuine, authentic and equal review, analysis and interpretation of the status quo. Due to the individual assessment about his/her strengths and weaknesses, the executive manager can ascertain a verified basis for their career and personal and mental development.
The management assessments offer real information on the quality and ability of the company. They serve the chance of accurate and inevitable comparisons over layout and consistency (benchmarking) with other firms. In many different phases, management audits act as an unaffiliated framework for decision-making to delegate and develop executive managers ‘identities.
Areas of application:
- Merger and restructuring processes concentrate on how positions should be filled in general.
- Drawing up vital management statements following differences in the strategy.
- Benchmarking / due diligence analysis is done basically for the determination of the company’s position among competitors who are also compared with best practice.
- Advise the surrounding organisation mechanisms of growth and succession planning.
What SAAAR Provides?
We, at SAAAR, provide management audit in India and focus mainly to provide company managers with a simple, manageable, thorough, meticulous and objective review of the organisation’s organisational performance and effectiveness, and to identify potential areas for improvement. We believe that Management Audits are a value addition exercise rather than a mere compliance exercise.
Our firm strongly believes in providing value-added services through the highest levels of professional competence and integrity to our clients. We program the compliance reviews to tailor fit particular customer’s specifications as it helps them in easily managing their crucial business matters.
Bearing in mind the likely structure for risk management, our management audits implement the “Risk-Based Audit” (RBA) approach as well as the several other tools and methods for attaining the audit objectives.
Our management evaluations are relied on:
- Evaluating the existing business procedures, policies, applications and the practices to recommend them the best practices including a complex process of benchmarking.
- Relevant assessment of internal controls established by the various organisations and the suggested areas for the stabilising
- Review & Assessment of the framework for the risk management and its implementation so that it will provide recommendations or suggestions for improvement of the framework.
- Review of the existing business processes, policies and practices to prescribe them the best practices, inclusive of a thorough benchmarking exercise.
- Providing goal-oriented and some realistic approaches; also, accompanied by the encouragement of their execution.
- Constructive analysis of the activities by holding the strategic needs of the customer in mind.
- Determination and guidance on the areas of cost control, sales management and the organisational performance enhancement accompanied by the assistance in execution.
- Verification of the conformity with various regulatory requirements and operating guidelines
For management audit services in Delhi, reach out to us @ info@saaar.co.in
Frequently Asked Questions
- How is management audit different from internal audit?
Management Audit is a kind of appraisal in which the performance of the overall management is evaluated through an objective and comprehensive assessment by an independent authority.
Conversely, an internal audit is carried out to provide an unbiased and independent review of the system and processes of the business organisations. It is done to detect fraud and prevent errors. It can be said that a management audit is a part or extended version of the internal audit.
Internal audit is mandated by law for certain companies, whereas a management audit is not required for any company by any statute.
- Who is required to get the management audit done?
Management Audit is not mandatorily required under any law. Still, every organisation should get the management audit done to analyse and assess the competencies and capabilities of its management in carrying out corporate objectives. The management audit helps evaluate the management team’s effectiveness to work in the interests of shareholders, uphold reputational standards and maintain good relations with the employees. It also analyses how well an organisation’s management is applying its strategies and resources.Management audits must be conducted before mergers, restructurings, bankruptcies, and succession planning to identify weaknesses in a company’s management.
- Is management audit mandatorily required under any statute?
No, management audit is not required under any statute.
- What are the key benefits of the management audit?
The key benefits of management audit are as follows –
- It helps evaluate the performance of management at various levels.
- It is helpful in increasing the profit margin by providing solutions to maximise the company’s resources in a valuable way.
- It marks the incapabilities in various levels of management and provides suggestions to enhance the efficiencies.
- It audits and evaluates the policies and planning structured by the management and judge if they are appropriately implemented.
- It creates a strong communication system with outsiders and within the various departments.
- Who can conduct a management audit?
Since Management Audit is not statutorily required, there are no prescribed qualifications for a management auditor under any law. Hence, it is at the discretion of the company’s board as to who is to be appointed as a management auditor.
So, any independent expert such as a Chartered Accountant (CA) or a Cost and Management Accountant (CMA); or any management consultant can be appointed by the Board of Directors to carry out a management audit. The internal auditors of the company can also perform management audits.
