An Emergence of Management Audit for Ensuring Sustainable Growth of Organization: A Review and Comparison With Statutory Audit

Abstract

Audit reviews records with reference to preset standards; a statutory audit involves the review of financial compliance, whereas a management audit is the review of the overall performance of an organization. Management audit is becoming increasingly important for the sustainable development of organizations in a competitive global environment. The main issue of this research is to determine the gap in administering mandatory statutory audits in an organization. This study aims to examine the significance of management audit as compared to statutory audit. This discussion compares and contrasts both management audit and statutory audit to highlight their contribution to the productivity of the organization on a long-term basis. The paper has synthesized theoretical and practical frameworks from both peer-reviewed and professional studies as part of a narrative comparative literature review. The key outcomes of the review are informative regarding the use of management audit in an organization, which promotes decision-making, productivity, and ethical leadership, where it is used in conjunction with statutory audit. A statutory audit is stipulated by law, but a management audit is voluntary. The combined use of management and statutory audits may enrich governance, enhance sustainability, and improve strategic leadership, which is a key implication of the findings.