This law has recently made about the audit of management as previously it is not mandated for management to keep an auditor and this is new in auditing. Management is that area that is beyond conventional audit as it reveals every aspect of the overall performance of management which includes planning, organizing, coordination, and control. This audit of management helps to detect and diagnose the problem and after detecting the problem it gives suggestions to avoid or to solve that problem. Now the question is why audit for management is needed to improve the functioning of improvising of the functioning of management. The auditor advises the management about various matters which is related to the performance of various departments as well as the whole organization.
What are the objectives and advantages of this audit?
In the management, field audit makes extra efforts to boost the targets of the management and it also improvises sound plans to achieve its goals. If an audit is done in the previous year and they found something flawed in that year they can take appropriate measures to overcome that which helps in the effective discharge of duties to the person allowed to the departments. Not only this if the management is encouraging new trainers and applicants they will get a sufficient amount of work for the trainees to work on so that they can easily combine the information and do what they’re best at. If we talk about advantages there are a handful of advantages that audit provides which include the evaluation of the performance of management, establishing good relations with employees, also it is helpful in planning, making objectives and refreshing policies for management. On the financial part, it is helpful in the preparation of budgets of the organization and resource management.
What qualities does an auditor should have?
In the field of management, most of the time people have only experienced cabin work or desk work as their role was more theoretical and full of that experience after time people suggested to look for selective qualities that should come from real experiences and these qualities of an auditor should carry some dignified points such as the experience of management functioning, food knowledge of financial statements, economic or business laws, most importantly how an organization works and how to solve problems related to this. These qualities make an auditor beat of his kind which proved to be a successful auditor for the management