Importance of audit management performance

Seyed Abolfazl Borhani Sabzevar¹

1) Audit graduate student, Department of Accounting, Neyshabur Branch, Islamic Azad University, Neyshabur, Iran.

IOI Code : XYCH-AECFD
Publication : 3rd International conference on Management , Economics and Humanities(icmeh.org)
Abstract :
    Governments provide their current and development costs from revenues earned by the sale and export of goods and services, sales and export of underground resources and tax. Due to the limitation of revenue and unlimited costs, Governments collect revenues and allocate the economic resources fairly and monitor costs according to laws and regulations, and they are required to report to the people who are the main owners of wealth and resources. Monitoring the collection of revenues and costs will run through financial audit, to examine if the budget declared by law has properly been spent. But since the financial audit, only audits the amount of revenues collected and expenses and the possibility that whether the receipt of revenues and expenses have been done on time? And whether managers have spent the economic resources in accordance with approved plans and determined goals. It is not verifiable in this way but by management performance. So, in order to avoid waste of economic resources by incompetent and poor managers, management performance audit is done by government. On the other hand, since the financial statement audit does not meet all the needs of the organization Managers, competent managers performance also tend to be analyzed by independent auditors and strengths and weaknesses are identified and necessary solutions is offered and executed to remove them. So in this study the role of management performance is discussed.

Keywords : performance audit operational management control systems the allocation of economic resources