Auditing-B. com 3 rd Year Unit I introduction to Auditing Meaning and Definition of Auditing

Distinction between Management Audit and Statutory Audit
The statutory Audit
 
is examining the accounts as per provisions of law but management audit is 
concerned with audit of performance of functions of management. Following are the points of 
difference
 
Management Audit 
Statutory Audit 
1.
 
The management auditor examines the 
performance of management and makes 
suggestions to improve it in the future. 
2.
 
The Conduct of management audit is optional 
and voluntary. There is no legal compulsion in 
this regard so far. 
3.
 
The management auditor is answerable to 
management only. 
4.
 
No qualification has been fixed for the 
management auditor. 
5.
 
The management audit is an aid to 
management. 
6.
 
The management audit may cover more than 
1.
 
Statutory Audit reports on the financial aspects 
of an organization indicating whether financial 
statements show a true and fair view of state 
of affairs for a particular period. 
2.
 
The audit of financial accounts is legally 
compulsory for a joint stock of company. 
3.
 
The Statutory auditor is accountable to the 
shareholders and authorities under the Act. 
4.
 
The statutory auditor must be a Chartered 
accountant and emphasis is on independent 
report on financial matters. 
5.
 
It is a check on management. 
6.
 
It is conducted for a particular accounting 

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one financial year.