Question

Management audit refers to ________________.

• A. Audit on behalf of the management
• B. Audit of management accounting system in operation
• C. Systematic appraisal of management's objectives and procedures
• D. Audit of managerially initiated financial transactions

Answer 1

The correct option is C Systematic appraisal of management's objectives and procedures

Management audit refers to systematic appraisal of management's objectives and procedures. This audit basically checks the policies, procedures, methods of the organisation and check the efficiency of the organisation in achieving organisational objective.