What role does management auditing play in a business?

Management auditing plays a critical role in reviewing and adjusting the strategic plan of a business. This process involves a systematic examination of the company's policies, procedures, and performance relating to its strategic objectives. By evaluating the alignment between current operations and strategic goals, management auditing helps identify areas where the organization may need to redirect its efforts or make necessary adjustments to its strategy.

The role of management auditing is centered around providing insights that enable managers to make informed decisions and thus improve the effectiveness and efficiency of the organization. It is not focused solely on sales forecasts, employee performance, or the compilation of financial reports, which are more specific to operational and financial assessments rather than the broader strategic context in which management auditing operates. This approach ensures that the business remains adaptable and responsive to changes in the market environment, ultimately supporting long-term success.