AUDITING

Management Audit

Click to edit Master subtitle style Presented by: Raza Zameer

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Introduction to topic
Definition:
A systematic assessment of methods and policies of an organizations management in the administration and the use of resources, tactical and strategic planning, and employee and organizational improvements. The objectives of a management audit are to 1. Establish the current level of effectiveness, 2. Suggest improvements, and 3. Lay down standards for future performance.

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Phases of Management Audit

Phase I Establish Priorities and Establish Schedule Phase II Define and Organize the Audit Phase III Form the Audit Team Phase IV Perform the Audit Phase V Prepare the Report Phase VI Management Action Phase VII Final Follow-up of Results
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Practical Study
PECO ( Pakistan Engineering Company)
The manufacturing firm has been actively engaged in the manufacture of engineered good since late 50s. The company has rapidly expanded its product range to serve various sectors of the company. The company also received ISO 9001 certification in 1996. But still Company is going through economical crunch for the last few years.

Management Audit Techniques:

General Techniques being applied by the Company are: A. Employee Based Auditing Techniques B. Task Based Auditing Techniques C. Technology Based Auditing Techniques D. Material Based Auditing Techniques E. Product Based Auditing Techniques 4/17/12

SWOT Analysis
Strengths:
Strong Management Audit team Timely detection of errors & frauds through audit techniques Zero defective goods productivity

Weaknesses:
Weak

total quality management team Pressure on management auditors to identify frauds

Opportunities:
They

can adopt more management audit techniques through latest I.T technology They can monitor and implement I.T based software to 4/17/12

Conclusions:
Even though many audit techniques are being applied in the company, there is room for improvement. The main reason for losses in the company is because of political instability and reliance on government orders. The group strongly recommends that the issue of productivity should be taken up at national level and the national attitude towards working methods needs to be changed.

Recommendations:
More

professional approach to Marketing by establishing a full-fledged Marketing Department. Launch a website where suggestions from all staff may be sought. Increase in salaries to motivate staff at all levels. 4/17/12