THE USE OF MANAGAEMENT AUDIT AS AN AID FOR EFFECTIVE MANAGEMENT” (A CASE STUDY OF SOME SELECTED FIRMS IN NNEWI)

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CHAPTER ONE
1.0     INTRODUCTION
1.1     BACKGROUND OF THE STUDY:
This study seeks to enhance the understanding of the concept of management audit as an aid for effective management. The management auditor’s role in the evaluation of management performance cannot be over emphasized.
          Just as change has compulsory challenge to management, so also the problem of change gives new and unparalleled opportunities to management auditors.
          Today’s management auditors represent almost top most valuable medium by which the management can extend decision making and responsibility throughout the entity. This extension is feasible because responsive management auditing is a tested mechanism for checking upon and appraising the exercise of management authority and responsibility in every level. Management audit is a total management unfortunately, however, many top managers and business executives are not interested in any sound system of management audit therefore does not place importance on its review on appraisal.
          The truth is that most successful business enterprises in the world have dedicated managers who have appreciated the importance of management audit and any business firm who wants to be successful should place much importance and attention to management audit.
          Management audit helps management to achieve the following:
1        Maintaining the continuity of business entity
2        Achievement of corporate objective of profit maximization and efficient management of resources.
3.       Effective information management and communication throughout the organization.
4        Evaluation of pressure corporation policies in the area of planning and controlling
5        Formulation of new management polices when existing ones tends to be absolute or not workable.
          The above results might have been hindered because of the following constrains.
1.       Top managements are not interested in the resources and the use of management audit.
2        The concept, aim and purpose of management audit are not fully known.
3        Incompliance and lack of integrity of management audit staff.
1.2     STATEMENT OF PROBLEM

This concept of management audit has been widely misunderstood, perhaps to poor organizations and management orientation. Some directors, accountants, corporate planners and top management executives occasionally undertakes corporate planning without clearly setting the idea of management audit appreciated by managers. It is therefore not surprising that management audit has not been properly understood in many of our business enterprise even when it is a reliable and dependable aid for effective management, other problems for which solutions are sought for include:
1.       The effect of lack of management interest and management resistance application of management audit staff.
2        Misunderstanding the concept of management audit by the management audit staff.
3        Incompetence and lack of integrity of management audit staff.

4        Pressure within and outside the company which hinders the effective use of management audit work.


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