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.
Key for MCQ on Management Audit:
Conducted by an Independent consultant hired by the Company.
Scope is Narrow one.
Duration: One or Two months