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CMA Final · Cost and Management Audit · Management Audit in Different Functions

When auditing the finance function, which of the following is a matter a management auditor would examine that goes beyond a statutory financial audit?

A management auditor examines whether capital structure, working capital policy and cash forecasting support the company's objectives economically. This is evaluation of financial management quality, unlike a statutory audit, which concentrates on a true and fair view, report timing and compliance such as schedule depreciation.

  1. AWhether the balance sheet shows a true and fair view
  2. BWhether the auditor's report has been signed within the statutory time
  3. CWhether the capital structure, working capital policy and cash forecasting support the company's objectives economicallyCorrect
  4. DWhether depreciation has been charged as per the Companies Act schedule

Explanation

A management audit evaluates the quality of financial management decisions, such as capital structure, working capital and cash planning, against objectives. True and fair view, signing of the report and statutory depreciation are matters tied to the financial statements audit and compliance.

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