A management audit is an examination and evaluation of a company’s management’s competencies and capabilities in achieving corporate goals. The goal of a management audit is to assess the management team’s ability to work in the best interests of shareholders, maintain strong employee relations, and uphold reputational standards, rather than to evaluate individual executive performance. It’s critical to emphasise that the management audit evaluates the company’s overall management, not individual managers’ performance.
A formal management audit committee does not exist on the board of directors of a firm. Instead, board members serve on the remuneration committee and evaluate individual executives’ performance using both quantitative (organic sales, EBIT margins, segment margins, operating cash flows, and EPS) and non quantifiable (or intangible) factors (e.g., efforts toward acquisition integration).
An independent consultant will be hired by the board of directors to perform a management audit. The audit’s scope may be limited, but in most circumstances, it is extensive, covering many important parts of a management team’s responsibilities.
We will assign a dedicated and qualified team to your entity, who will assist you in ensuring statutory compliance and providing necessary management reports.