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 of the problems themselves.

(ii) The audit team need not spend an unduly long time for familiarizing themselves with the background information for study.

(iii) It may be easier to get the support of the higher management, because such audit involves no extra cost.


(iv) The acceptance of the findings may be comparatively easier because the concerned personnel may readily accept recommendations from the internal management audit team.

(v) The implementation of the new method or operation or organisational arrangement may be easier because the personnel who designed and advised it are on the’ premises.

(vi) The experience and expertise gained by the company personnel in the self-appraisal scheme could be gainfully utilised for subsequent audits.

Disadvantages of Management Audit by Self-Appraisal:

(i) The company personnel possess experience limited only to their organisation.


(ii) They are more likely to take facts for granted and may not probe into the details to unearth problems.

(iii) The company may not have the necessary talent.

(iv) It may not be possible for the company to spare personnel for the studies as these may take long time.

(v) Due to conflicting interests, the audit work may be prolonged and as a result, the action on findings and recommendations may be delayed.


(vi) The vested interests of the operational executives may prevent the team from being objective.

(vii) Finally, support may be available for a loosing operation than one that appears profitable, since change is preferable to loss, whereas success seems to be the result of the existing order.