The correct answer is: A. Chartered Accountant
A management audit is an independent assessment of the effectiveness of a company’s management systems and controls. It is typically conducted by a chartered accountant, who is a qualified professional with expertise in accounting, auditing, and financial reporting.
A management audit can be used to identify areas where a company’s management systems and controls can be improved. It can also be used to provide assurance to stakeholders, such as shareholders and creditors, that the company is being managed effectively.
A management audit typically involves the following steps:
- Planning the audit: The auditor will meet with management to discuss the scope of the audit and the objectives that they hope to achieve.
- Gathering evidence: The auditor will collect evidence to support their findings, such as financial statements, management reports, and interviews with employees.
- Analyzing the evidence: The auditor will analyze the evidence to identify areas where management systems and controls can be improved.
- Reporting the findings: The auditor will report their findings to management and, if necessary, to other stakeholders.
A management audit can be a valuable tool for companies of all sizes. It can help companies to identify and address areas where their management systems and controls can be improved. It can also provide assurance to stakeholders that the company is being managed effectively.
Here is a brief explanation of each option:
- Chartered Accountant is a qualified professional with expertise in accounting, auditing, and financial reporting. They are typically appointed by companies to conduct management audits.
- Company Secretary is a qualified professional with expertise in company law and corporate governance. They are typically appointed by companies to provide advice on legal and governance matters.
- Manager is a person who is responsible for the day-to-day operations of a business unit or department. They are typically not qualified to conduct management audits.
- Any Qualified Person is a person who has the necessary knowledge and experience to conduct a management audit. However, it is not advisable to appoint someone who is not qualified to conduct a management audit, as this could lead to inaccurate or misleading results.