The management audit programme is an essential prerequisite to conducting the audit.
It is a plan of action drawn in advance of taking up the audit, and to help the auditor to cover the entire area of his function thoroughly.
He should lay down for himself a proper procedure to be followed to complete the work in time, giving thorough coverage to all aspects.
In order to frame an efficient management audit programme the following factors should be considered:
(i) Review of the organisational objectives and plans
(ii) Study of the policies and practices of the management
(iii) A critical review of the organizational structure
(iv) Study of the systems and procedures
(v) Evaluation of operations
(vi) Study of the efficiency of the use of physical resources available
(vii) Exercise of proper management control
(viii) Maintain suitable monitoring system through management information system (MIS)
(ix) Check on adherence to the statutory obligation and
(x) Above all, review the efficiency of manpower handling, which ultimately results in the organisation’s success.
An audit programme is laying down the path in its required details before conducting such audit.
A management auditor shall shrewdly assess weak and risk areas in the organisation and deal with such areas in more detail.
He has to lay down a programme by making a list of such weak and risk areas and follow them up in his audit.