Management Audit

Abstract

The audit of management makes a thorough examination of the organization and all its components. This process makes it possible to identify problems and possible defects that can be observed in companies offering so the oppotunity for management to improve and solve them in time. Usually it noted that the market is more targeted instrument that does not forgive the wrong decisions entities. In fact, every wrong action has its price, which the market should de compensated. This requires companies to take action early to assess if the management is performing its duties efficiently and effectively. Management audit focuses on relationships, rights and obligations arising between the board of directors and audit committe and executive director, all in interest of shareholders and the organisation as a whole. If the latter will develop tasks efficiently, they will make decisions objectively aside personal interests and taking up their responsibilities, then the management audit reports would be positive. This topic is analyzed the importance that the management audit. We will look more closely at the triangle of the Board of Directors– CEO–the Audit Committee. What effect does the management audit if one of these links does not work properly. Of course, it can also be thought that some things be given more importance than they deserve but the scandals of recent years show that this would be a costly mistake.