Analysis and assessment of competencies and capabilities of a company s management in order to evaluate their effectiveness, especially with regard to the strategic objectives and policies of the business. The objective of a management audit is not to appraise individual executive performance, but to evaluate the management team in relation to their competition.
Management audits are often necessitated by major changes in a business. Some of the events that call for a management audit are top management changes, mergers, and acquisitions, and succession planning.