auditing - presentation on management audit

“Youth Boomers”Name ID.

Md. Shahidul Islam 110106050

Md. Moazzem Hossain 110106034

Md. Anqur Chowdhury 110106027

DEFINITION

William.p.leonard

“A comprehensive and constructive examination

of an organizational structure of a

company ,institution or branch of

government ,or of any component thereof ,

such as a division or department and its use of

human and physical facilities”

Objectives

Business managed efficiently.

Improvements and recommendations.

Plans and programmes executed.

Increasing managerial efficiency.

Objectives

Effective and efficient discharge of

duties and responsibilities.

Assess whether it can achieve the

overall business objectives or not.

scope

1. prospective demand of business and aims

with objectives.

2. Return on investment.

3. Relationship with shareholders and

investing public in general

scope

4. Ratio analysis of homogeneous industry

with heterogeneous quantity.

5. Financial planning and controlling.

6. Production and sales issue of the

management audit.

Types of information required for management audit

Objectives

Planning

Organization

Control

Functional areas

Functional areas

Purchase

Production

Distribution

Personnel

Finance and accounting

Management reporting

Meaning

“ A good business report is a communication that contains factual information , organized and presented in clear, correct and coherent language.”

-Johnson and savage.

Essentials of effective reporting

Good form and content

The report should be given proper title,

headings, sub-headings and paragraph

divisions.


Simplicity

The report should be presented in a

simple, unambiguous and clear

language.


Promptness

Promptness in submitting a report is an

essential element of a good report. The

reports should be sent at the earliest and

should not be delayed.


Relevancy

The reports should be presented only to the

persons who need them. Sometimes the

reports are sent to various departments

and the secrecy will not be maintained and

expenditure will be more.


Consistency

There should be a consistency in the

preparation of reports . The

comparability of reports will be possible

only if they are consistent.


Accuracy

The reports should be reasonably

accurate. A report sometimes will be

approximated but approximation should not

be done up to the level where information

loses its form and utility.


Controllability

The report should be addressed to

appropriate persons in respective

responsibility centres and its variance

should be mentioned.


Cost Consideration

The cost of preparing and presenting the

report should also be considered and it

should not exceed the advantage

derived from such reports.


Comparability

This reporting system is meant to help

management in taking correct decisions

and improving operational efficiency of

organization. This information helps in

finding out deviations or variances.


Frequency of reports

Along with promptness, the frequency of

reporting is also significant. The timing of

reporting will depend upon the nature of

information and its purpose. These reports

are prepared for appropriate persons.

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auditing - presentation on management audit

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