Question

Explain the term Management Audit. Explain the difference between Financial Audit and Management Audit.

Answer 1

The key difference between financial audit and management audit is thatfinancial audit is an audit conducted to present an opinion whether the company financial statements reflect a true and fair view whereasmanagement audit is a systematic evaluation of capabilities of the company's management with regard to 

Answer 2

Management Audit is a systematic examination of decisions and actions of the management to analyse the performance. ... Management Audit is generally conducted by the employee of the company or by the independent consultant and focused on the critical evaluation of management as a team rather than appraisal of individual.