Question

Management audit is a technique to keep a check on the performance of

(a) Company

(b) Management of the company

(c) Shareholders

(d) Customers

Answer 1

(b) Management audit implies a systematic assessment of the overall actions of the management of a company. It aims at evaluating the efficiency and effectiveness of the management and helps in identifying the areas where it lags behind. It reveals the deficiencies in performance and helps in taking corrective measures. Hence, management audit keeps a check on the overall performance of the management of the company.