Question

Objectives of management audit are:
1. To detect errors and frauds.
2. To report whether Balance Sheet and Profit and Loss Account present true and fair view of the business.
3. To ensure optimum utilization of human resources.
4. To suggest improved methods of managerial operations.
5. To point out weak spots in the organization structure.

• A. 2, 4 and 5
• B. 1, 3 and 4
• C. 3, 4 and 5
• D. 1, 2, 4 and 5

Answer 1

Answer: (C)

3, 4 and 5

Management Audit is a process of ensuring the capabilities and effectiveness of management to fulfill the organizations objective.

Management Audit is done to ensure:

1) Optimum utilization of human resources

2) Improvement in method of managerial operations

3) to find out the weak areas in the organization structure