Performance Management Audit

Performance Management Audit is a systematic examination of decisions and actions of the management to analyze the performance. Performance Management audit involves the review of managerial aspects like organizational objective, policies, procedures, structure, control and system in order to check the efficiency or performance of the management over the activities of the Company. Unlike financial audit, management audit mainly examine the non financial data to audit the efficiency of the management.

Somehow audit tries to search the answer of how well the management has been operating the business of the company? Is managerial style well suited for business operation? Performance Management Audit focuses on results, evaluating the effectiveness and suitability of controls by challenging underlying rules, procedures and methods.

Performance Management Audit is an assessment of methods and policies of an organization’s management in the administration and the use of resources, tactical and strategic planning, and employee and organizational improvement. Management Audit is generally conducted by the employee of the company or by the independent consultant and focused on the critical evaluation of management as a team rather than appraisal of individual.


  1. Establishing the current level of effectiveness
  2. Suggest Improvement
  3. Lay down standards for future performance
  4. Increased levels of service quality and performance
  5. Guidelines for organizational restructuring
  6. Introduction of management information systems to assist in meeting productivity and effectiveness goals
  7. Better use of resources due to program improvements.
  8. To identify the weaknesses and inefficiencies of management in different functional areas, such as production, sales, finance etc.
  9. To analyses the different ways to overcome the inefficiencies, or weaknesses.
  10. To critically review the organization structure.
  11. To evaluate the ways for improving the management efficiency and to select the best are the some of the objectives of management audit.

Audit Procedures

Generally auditor deploy following audit procedures to conduct the management audit.

  • Questionnaire
  • Interview with employee and managers

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