Management Audit

Khandhar Mehta and Shah | Management Audit

Management audit

The business environment is continually changing, and with the increased competition, it has become necessary for businesses to focus on managing the business with the utmost care and dynamism.

A business suffers from various risks, including business risk, operational risk, system risk, and financial risk. All these risks have to be appropriately identified, ranked and managed to stay competitive in the current environment. Risk management and operational efficiencies are the two aspects that can make or break a company. Proper internal controls have to be designed, implemented, and monitored to ensure top-notch performance. Our auditors at KMS helps management by advising them on various aspects to improve the overall performance of the company. We provide management audit services where we conduct risk assessment studies, design internal control, implement management information systems, and ERP systems to ensure that the organizational goals are achieved. As the management of businesses is getting more and more complex, it gets even more important to get expert advice from the ones who are the best in business.

What is a management audit

Management audit is a systematic examination, appraisal, and analysis of management’s overall performance. It involves a comprehensive examination of structures, components of various departments of the organization, analyzing plans and policies, operating procedures and internal control, and how the organization uses its physical and intangible human resources.

It provides a clear, independent, and comprehensive review of the functional efficiency of the organization and improvement opportunities.

Our management audit service is highly customizable to meet your unique needs. We assist you in managing your key business challenges, be it achieving your organizational goals and objectives, meeting operational issues, complying with laws, or providing information that aids in decision making.

Objectives of management audit

To check if the organization is optimally utilizing all the resources, both tangible and intangible, to boost efficiency.

Management audit points out the shortcomings in business processes, policies, and procedures of the organization.

To analyze and identify the weak links that may be present in the organization’s structure or the internal control system and ways to tackle them.

To check compliance with regulatory requirements and internal rules and regulations.

To establish a system where early signals of weaknesses or potential problems can be detected and appropriately addressed.

To obtain expert guidance from management auditors in the matters concerning corporate governance.

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Being one of the renowned CA firms in Ahmedabad, we always focus on giving our clients the best in class services that reflect our values and vision of transparency, flawless, and professional work. Visit our CA website to understand and know more about our services and our company. Choose us for your business as the best deserves the best.

Management audit procedures

The management audit procedure involves five easy steps which are:

Scope of management audit

Corporate governance

It includes an independent review of policies, procedures, structures, and controls implemented by the management to achieve organizational goals. It also consists of an examination of decision-making abilities, a review of marketing, research and development, management information system, and processes related to human resources.

Financial planning

The efficacy of various sources of finances and its expenditure on various things and the budgeting process forms a part of the management audit. It helps in identifying the efficiency of utilizing and raising funds.

Studying the market demand and return on capital

Our auditors review the current and prospective demand for products and services offered by the business. Based on the study, they analyze if financial goals made by the business are realistic and also suggest ways and means of achieving them. Whether the return on capital is fair or poor is also checked by the management auditor to assist the management in deciding about product pricing, capital budgeting, and additional fund requirements.

Performance Evaluation

The performance of the firm is compared with either their own past performances or with other firms from the same industry to find the position of the firm, and based on the findings, the auditor suggests the ways to improve.

Cost Reduction

Finding out areas of cost reduction and suggesting various ways to improve the bottom line

IT Operations Review

Evaluation of physical access controls, back-up procedures, system reviews, network security reviews, and firewall configuration. Undertaking software testing, ERP implementation, and IT project management.

Importance of management audit

Management audit can provide you exceptional results as:



It helps in evaluating the efficiency of management. The method of carrying out a management audit is independent and non-biased; therefore, you can be assured that the advice given by our auditors will be precise, accurate, and true to help you boost efficiency.



It helps in evaluating the efficiency of management. The method of carrying out a management audit is independent and non-biased; therefore, you can be assured that the advice given by our auditors will be precise, accurate, and true to help you boost efficiency.



It also helps in determining how the management is implementing the policies, plans, and other rules and regulations to stay on track and reach the organizational goals.



It also helps in determining how the management is implementing the policies, plans, and other rules and regulations to stay on track and reach the organizational goals.



It aids in making better decisions and improving the existing plans and policies. The management audit assesses the decision-making skills of the management and aids them with better ideas and scope to upgrade the skills. Further, a management audit also helps in changing and revising the plans and policies as per the need of the organization.



It aids in making better decisions and improving the existing plans and policies. The management audit assesses the decision-making skills of the management and aids them with better ideas and scope to upgrade the skills. Further, a management audit also helps in changing and revising the plans and policies as per the need of the organization.

Key differences of KMS for management auditing

KMS has consistently proved itself to be one of the renowned companies to provide management auditing services in Ahmedabad. We have an expert team of auditors who can not only carry out best management auditing but also have diverse knowledge in other forums as well. We use the latest audit tools, well-researched checklists, which in turn leads to less turn-around time. It saves you time and leads to faster efficiency in your organization.

We do various reviews, including internal control review, financial closure review, to name some. Our pre-audit verification and SOP development make our auditing process the most efficient and balanced one. We provide our services to a wide range of industries and make sure we carry out proper research before and after an audit. Our extensive experience in various accounting branches like advisory, direct tax consultancy, statutory auditing, GST auditing, internal control, etc. makes sure that you never go disappointed from us. Our customer-centric approach and belief that clients come first make us your best choice.

What do our clients say about us?

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frequently asked questions(faqs)

The purpose of a management audit is to evaluate the effectiveness of the management team in fulfilling the objectives and goals of the company.
No, management audit is not compulsory, but for better managerial and overall performance, one must conduct a management audit.
A management audit report is of prime value to the management as it focuses on improving controls and efficiencies and bringing a positive change in the organization. The structure of the management audit report is as under:
  1. Objective
  2.  Scope of work
  3.  Key Findings
  4. Key Recommendations
  5. Action Plan
  6. Follow-up
Accordingly, one would immensely benefit from a management audit report if he looks at key findings, key recommendations, and action plan sections of the management audit report.
Management auditors provide their unbiased opinion on the corporate governance mechanism and its implementation in the organization. They also provide valuable suggestions to improve the existing corporate governance environment. Management audit addresses the important areas like risk management, controls, and governance framework within the organization. Hence it immensely helps in maintaining an effective corporate governance environment within the organization.