Management Audit System in Public and Private Sector Companies - A Comparative Study

Abstract

The globalisation of economies has resulted in business organisation growing rapidly. In the process of growing, companies are finding it difficult to manage with traditional Operational and Financial audit to assess the overall performance. This specific necessity of evaluating the performance of the organisation has resulted in companies introducing Management Audit System in their organisations along with other types of audits such as Financial Audit, Operational Audit, Social Audit etc. Management Audit is an audit to examine, review and appraise the various policies and actions of the management based on certain objective standards. Management Audit is essentially a review of the performance of various activities or functions. It evaluates the actual performance and compares with the pre-determined targets. Management Audit has wider scope in an emerging country like India. Indian companies are competing with world renounced companies within the country as well as outside. These facts make the Indian companies adopt Management Audit System in their organisations, so that they achieve what they planned. Indian companies need a constructive appraisal of the process of management and its operations. Keeping these facts in mind, it was decided to compare the implementation of Management Audit System in public and private sector companies to know if there are any visible unique features between these types of organisations and also to know which variable contribute for the success or failure of these companies. It is also planned to assess it there is significant difference between public and private sector companies in terms of variables included under Management Audit System.