Management Audit VS Statutory Audit | Auditing | VNSGU | ICAI | BCom Sem 6 #himanshunandwani

Management Audit & Statutory Audit: (1) The financial audit will disclose either the bad or good financial health of business, but not its causes, while management audit will analyse the causes and suggest remedies to improve it. (2) The statutory audit will present profit or loss of business and certify its correctness, while management audit will disclose reasons for losses or measures to improve profit. Management audit can prevent financial loss before it occurs, while statutory audit can only certify the financial loss. (3) Statutory audit is concerned with past performance, i.e. it is a post-mortem of financial transactions, while management audit will analyse the past and looks to the future. (4) The scope of statutory audit is limited to financial transactions only, while the management audit will assess performance of various areas of business enterprise like sales, production, personnal etc. (5) The statutory audit examines the accounts of one year only and certifies its correctness, while management audit will cover more than one year or sometimes, a part of the year. (6) The statutory audit is conducted according to legal provisions and qualifications, disqualifications, rights, duties and liabilities etc. are all laid down in the law. While management audit in based on contract. (7) In the statutory audit, the accounts are examined and report is given for the accounts of the whole business, while management audit may pertain to any one aspect or activity or function of the business. (8) A management audit examines the policy and planning, while statutory auditor does not bother whether these are the best or most suitable or in the interest of business. (9) Statutory auditor examines the performance of the whole company, while management auditor appraises the performance of each executive. #managementaudit #statutoryaudit #financialaudit #learnwithhimanshunandwani #bcomsem6 #himanshunandwani #vnsgu #icai #bcomhonours #icai_students_group #tybcomsem6 #auditing