Ans: Option'B' is correct because ---
~MANAGEMENT AUDIT is an EVALUATION of the MANAGEMENT as a whole.
~It critically EXAMINES the full MANAGEMENT PROCESS, i.e. PLANNING, ORGANISING, DIRECTING, and CONTROLLING.
~ It finds out the EFFICIENCY of the MANAGEMENT. To check the efficiency of the MANAGEMENT, the company's plans, OBJECTIVES, POLICIES, PROCEDURES, personnel relations and systems of control are examined very carefully.
~MANAGEMENT AUDITING is conducted by a team of experts.
~They COLLECT DATA from past records, members of management, clients and employees.
~The DATA is ANALYSED and CONCLUSIONS are drawn about MANAGERIAL PERFORMANCE and EFFICIENCY.

Management Audit and its Purpose
- Management audit is a technique used to assess and evaluate the performance of the management of a company.
- The purpose of a management audit is to identify strengths, weaknesses, and areas for improvement in the management practices and processes of a company.
Key Components of a Management Audit
- Structure and Organization: The audit assesses the organizational structure of the company, including the roles and responsibilities of the management team.
- Decision-Making Processes: The audit evaluates the decision-making processes followed by the management, including the involvement of key stakeholders and the use of data and analysis.
- Communication and Collaboration: The audit examines how effectively the management communicates and collaborates with employees, shareholders, and other stakeholders.
- Performance Evaluation: The audit assesses the performance evaluation methods used by the management to measure the effectiveness of their strategies and initiatives.
- Risk Management: The audit evaluates the management's approach to identifying, assessing, and mitigating risks that may impact the company's performance.
- Financial Management: The audit examines the financial management practices of the company, including budgeting, cost control, and financial reporting.
Target Audience of a Management Audit
- The primary target audience of a management audit is the management team of the company.
- The audit helps the management team to identify areas for improvement and make informed decisions to enhance their performance.
- The audit also serves as a tool for the board of directors and shareholders to assess the effectiveness of the management team and hold them accountable.
Conclusion
- A management audit is a valuable tool to assess and evaluate the performance of the management team of a company.
- It helps in identifying areas for improvement and making informed decisions to enhance the overall performance of the company.