MANAGEMENT AUDIT AS A TOOL OF ACHIEVING ORGANISATIONAL OBJECTIVES
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ABSTRACT
This research work is conducted as part of the requirement for the award of a Higher National Diploma (HND) in financial studies (Accounting).
It highlights the authors effort in finding out the ways which management audit is used as a tool of achieving organizational objectives in our everyday organizations.
The entire work is divided into five chapters, chapter one is an introductory analysis of the topic, then the background of the study, significance, scope and limitation, the purpose and hypothesis.
The second chapter i.e. chapter two dealt with the Literature Review and Theoretical Consideration.
Here related past works were reviews and the theoretical consideration on the present study was also brought into focus.
As well as scope and nature of management audit and the result of auditing management.
Then, chapter three contains an explanation of how and where the needed information for the study was obtained and how the sample size was determined and the limitations encountered in the course of conducting the research. It also contains the method of investigation.
Chapter four dealt with the presentation and analysis of data collected during the field survey, after which the postulated hypothesis were tested.
Lastly, chapter five makes up the summary, conclusion and
recommendations.
TABLE OF CONTENT
CHAPTER ONE
1.0 Introduction
1.1 Background of the study
1.2 Significance of the study
1.3 Scope and Limitation of the study
1.4 Purpose of study
1.5 hypothesis
- Definition of Terms
- Reference
CHAPTER TWO
- Review of Related Literature
- Definitions
- Scope of Management Audit
- Audit personnel
- Purpose of Management
- When to Audit Management
- Issues in the management audit
- Procedures/Techniques of management audit
- Problems of management audit
- Reference
CHAPTER THREE
- Research Design and Methodology
- Sources of Data
- Interview Question
- Method of Investigation
- Determination of Sample size
- reference
CHAPTER FOUR
4.0 Data Analysis
- Test of Hypothesis
- Reference
CHAPTER FIVE
5.0 Summary, Conclusion and Recommendation
- Summary
- Recommendation
- Conclusion
Bibliography
Appendix
CHAPTER ONE
- INTRODUCTION
In practice, there are two types of performance appraisal for instance, in appraising the lower level mangers, majority of firms utilizes traditional performance appraisal technique. A check list and rating system were designed, and the immediate supervisors make arbitrary assessments of performance though the upper level mangers are conversant with the concept of management by objectives.
Secondly, the upper level manager’s performance is also evaluated.
For example, when evaluating the performance of a district manger, say the performance of the districted is evaluation and this becomes the determinant of the evaluation of the manger. Furthermore, the evaluation performance of management as a whole is usually based purely on an analysis of financial accounting data exclusively.
One obvious reason for this occurrence is the lack of
agreement on a reliably tool for measurement of performance of management other than with the use of accounting data.
Recently, many have contended that in order to appraise the value of management, calculations must be made in addition to those prepare for financial ratio analysis.
It is in the context that the management audit started.
1.1 BACKGROUND OF THE STUDY
Management audit attempted to aid he management of the organisation by providing it with information and analysis useful in the process of control. Management audit can also be significant in financial accounting area. for many years now, stockholders, financial analysts, potential investors and other interested parties have been concerned with the annual reports of major co-operations and the attached letter form the president of the corporation. The concern has been that though a financial audit of records of the company has been performed and an pinion had been rendered, there was no additional method by with the outsider could evacuate the performance of management in addition to evaluating the performance of the company.
Accountants have been attempting to deal with the problem for some years now and many proposals have been presented of which management audit is the one that I think that has the greatest potential for the future. For both internal and external reporting for the future. For both internal and external reporting purposes, who are capable of appraising performance both for accounting data and management analysis.
If this appraisal were made and an opinion rendered, the management audit would be of significant benefit to internal and external parties alike.
The theory of management audit parallels that of financial auditing.
The purpose of the audit is being the attestation of management’s representations by an independent examiner.
By attestation, I refer tot he reliability of management statements regarding its own decisions as proven by an independent third party.
The auditor’s financial statement examines the performance of the company accountable to the stockhold