DOI: 10.5176/2010-4804_2.1.159
Authors: Ghodratollah Talebnia and Bahareh Banitalebi Dehkordi
Abstract:
Nowadays, one of the most critical strategies for innovative management is decision making optimization for increasing economicality, efficiency and effectiveness of resources used in institutes. In this regard, we should create organizational management control, and internal audit is one of the most imperative factors designed to help an organization accomplishes these objectives, which divides into two major categories: Financial Audit, and operational Management Audit. Many countries’ experiences have shown that from the standpoint that financial audit by itself does not eliminate informational management needs, with considering the advantages, shift in audit strategies toward operational audit which includes management audit and effectiveness audit is inevitable. In this regard, operational audit with integrated assessment of operational activities and organization procedure creates policies and useful methods and help recognized weakness and provide explanation for such flaws and also can pinpoint the opportunities for optimizing operational activities and detecting strength points. It also provides practical suggestion regard improving operational activities or for major reforms and finally with increasing efficiency and economization in operational activities create competition advantages and values and by these ways helps financial Institutes managers.In this literature, with defining management audit and efficiency audit, we review their objectives and goals, management audit procedure, relation between effectiveness, efficiency and economicality and their differences, and also theoretical fundamental relate to effectiveness.
Keywords: management audit, effectiveness audit, efficiency, effectiveness, economicality
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