Management auditing Essay Example | Topics and Well Written Essays - 3000 words

Management auditing - Essay Example This leads to the development of targeted objectives and standards, and the actual standards and objectives are compared to identify the potential gaps and flaws in the system (pickett, 2005). Management Auditing is applied at the core and structure of an organization with its basic emphasis on comprehensively examining the structure, functionalities and governing bodies, departments, division heads and all the major operations of an organization. Moreover, management auditing acts as a powerful tool that has the potential to ascend deep down into the core operations of management of any organization from a highest point to the lowest one. It further ensures that a sound and foolproof management is being conducted internally and strengthens on the enhanced relationship with the outside world only if the internal operations of an organization are run smoothly (Leonard). Management auditing is much frequently interchanged with Internal Auditing or even Operational Auditing. According to IIA Institute of Internal Audit’s CEO, the regulatory environments and complex business systems have evolved as a result of dynamic environment and for this internal audit function has been established to cope up with the solution to these problems. This system has been developed by the internal auditors and the corporate management, therefore this system is significant to the improvement of business performance and suggesting constructive ways of improvements to the line managers. (Wilson and wood, 1985). Management auditing ensures the efficient and managed workability of all business operations. It furnishes improvements and outlines suitable recommendations. It frequently strengthens and enhances the managerial efficiency. Moreover it delineates efficient methods and effective processes whilst designing responsibilities and duties of the work force and lastly it actively seeks the