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Question

Management audit is an extension of .................... .

This question was previously asked in
MH SET 2023 Paper 2 Computer Science and Applications Question Paper (26-Mar-2023)
The correct answer is

Internal audit

Management audit is an appraisal of the overall performance and effectiveness of management: its policies, planning, organisation, decision making and control. It looks at how well management uses its resources to achieve organisational objectives.

It grew out of internal audit. Internal audit already reviews the adequacy of internal controls and operational procedures on behalf of management, and management audit widens this review from routine checking to the evaluation of managerial performance itself.

Cost audit verifies cost records, efficiency audit examines the economy and output of operations, and special audit is ordered for a specific purpose or by a regulator. None of these is the base from which management audit evolved.

Hence, the answer is Internal audit.

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