Tag Archives | Auditing

Efficiency and Propriety Audit | Auditing

Efficiency is the ratio of a system’s outputs to inputs, and is strictly a limiting example of an idea of productivity in that an efficient system is one in which this ratio is optimal. Two categories of efficiency should be noted: Economic efficiency, which arises when the cost of inputs is minimized for a given […]

Cost Audit: Meaning and Objectives | Auditing

In this article we will discuss about:- 1. Meaning of Cost Audit 2. Objectives of Cost Audit 3. Important Legal Provisions as to Cost Audit 4. Cost Audit Report Rules, 1996 5. Cost Accounting Records. Meaning of Cost Audit: The terminology issued by the CIMA defines Cost Audit as “the verification of the correctness of […]

Management Audit: Meaning and Objective | Auditing

In this article we will discuss about:- 1. Meaning of Management Audit 2. Objective of Management Audit 3. Scope 4. Weaknesses. Meaning of Management Audit: “Management audit can be defined as an objective and independent appraisal of the effectiveness of managers and the effectiveness of the corporate structure in the achievement of company objectives and […]

Difference between Cost Audit and Financial Audit | Auditing

The upcoming discussion will update you about the differences between cost audit and financial audit. Difference # Cost Audit: 1. Covers only select specified industries. Product wise coverage and not the whole company. SSI units are exempted. 2. Applicable only after issue of the order by Central Government. 3. By a Cost Accountant. 4. Appointment […]

Management Audit: Concept and Scope

After reading this article you will learn about Management Audit:- 1. Management Audit Concept 2. Management Audit Scope. Management Audit Concept: Management audit may be defined as the systematic and dispassionate examination, analysis and appraisal of management’s overall performance. It takes into account both financial and non-financial factors including economic environment, their effect on the […]

Management Audit: Considerations and Selection

After reading this article you will learn about Management Audit:- 1. Fundamental Considerations for Management Audit 2. Selecting the Auditors for Management Audit. Fundamental Considerations for Management Audit: Management audit is conducted in the same way as that of a scientific investigation. The basic considerations of a management auditor for the efficient conduct of audit […]

Circumstances Leading to Development of Management Audit

This article throws light upon the eight major circumstances leading to development of management audit. The circumstances are: 1. The Size, Scale and Complexity 2. Need to Improve Productivity 3. Granting Financial Subsidy 4. Take-Over Bids 5. Societal Need 6. Need for Periodical Check-Up 7. Foreign Collaboration 8. Equity Participation. Circumstance # 1. The Size, […]

Management Audit: Definition, Meaning and Fundamental Concepts

After reading this article you will learn about Management Audit:- 1. Definition of Management Audit 2. Meaning & Concept of Management Audit 3. Fundamental Concepts 4. Scope and Process. Definition of Management Audit: There is no general agreement as to the precise meaning of the term: Management Audit…… The term has been defined differently by […]

Notes on Management Audit Criteria

This article provides notes on Management Audit Criteria. The management functions are fundamentally of two types—qualitative and quantitative. Even if quantitative criteria or standards are identifiable or determinable and auditable, the qualitative aspects are difficult to audit. With respect to Management Audit, the objective is to identify for management the typical problems the company faces […]

Management Audit by Self-Appraisal

After reading this article you will learn about Management Audit by Self-Appraisal:- 1. Advantages of Management Audit by Self-Appraisal 2. Disadvantages of Management Audit by Self-Appraisal. Advantages of Management Audit by Self-Appraisal: (i) The company’s personnel know the organisational policies, plans, personnel, operations, personalities and working relationships, the political climate, the functional importance, and some […]

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