The main purposes or objectives of management audit can be pointed out as follows:
1. To Measure The Performance
Management audit is conducted to measure the performance of different levels of management in the organization.
2. To Find Out The Errors And Frauds
It helps to identify the irregularities, weakness, errors and frauds in the management process.
3. To Provide Guidance
It helps to formulate the goals and guides the top level management to achieve those goals and objectives.
4. To Increase The Productivity
Another notable objective of management audit is to provide proper guidelines to improve productivity and profitability of the firm.
5. To Increase The Efficiency
It helps to increase the efficiency of management by reviewing the whole organizational structure.
6. To Facilitate Optimum Use Of Resources
It ensures proper allocation of resources (both physical and human resources) in the organization to achieve desired result.
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7. To Increase Moral And Motivation
Management audit helps to improve employee moral which leads to increase in their performance.
8. To Set Targets And Standards
It helps to set standards for the purpose to measure future performance.
9. To Provide Suggestions
It provides suggestions and directions for improvement which helps to obtain the goals and objectives easily.
