The report of a management audit narrates the results of the work of the external audit, drawing attention to the most important issues that can help improve the performance of a business. The conclusions and recommendations are two of the basic elements of the report in a management audit.
The report is the last step in the process of a management audit, a tool that allows the companies to detect the areas and processes in which they can improve to rationalize their operation and in this way maximize the returns in their management. What the owners do not find it interesting to undergo an external audit, objectively contemplate on the processes that can improve their performance,
The report of a management audit is the document where the auditor presents the conclusions and recommendations that will ultimately serve to improve the company. In order for management audit work to be effective, the final report should reflect certain situations like the ones mentioned below;
Whether the figures offered by the managers of the different areas of the company audited are correct or have had to be rectified by the auditor.
What are the strengths and weaknesses of the company detected
Contemplate the existence of facts or situations that may have impeded or impede the work of the auditor. The report of the management audit should be objective, complete, clear and constructive. It is imperative that its conclusions and recommendations are drafted in a clear manner, providing clear answers to the audit questions and making recommendations on the changes that need to be made to address the identified weaknesses.
The objective of the final report of a management audit is to reflect and interpret the results derived from the application of its procedures, narrating the results of its work and drawing attention to the most important issues. Its recommendations should be aimed at correcting the detected deficiencies, in which it guides the management of the company to solve the facts that can be improved and, to the extent possible, should estimate the probable savings or improvements of its application.
A management audit helps to analyze, diagnose and establish the recommendations to companies to successfully achieve strategy and it is appropriate to go to reorganization or restructuring of our company, although it is always useful as an analysis that allows us to improve any of the processes that take place within the company.
A management audit is distinguished from a financial audit. In a financial audit, the auditor seeks to provide objective information that certain states faithfully represent a given financial economic situation. The management audit examines management practices. In a financial audit, the auditor does not formulate recommendations on the management of the company, whereas, in the management audit, the recommendations should be extensively analyzing the causes of the inefficiencies and their consequences.