This involves investigation of the company’s entire management to ascertain whether the management is running the organisation in the best interest of the stakeholders. It investigates company’s managerial aspects of the business from high to low management. It assesses the efficiency of management to run the organisation in the most viable way.

Advantages
1.    It improves management quality.
2.    Help assists in solving any bureaucracies.
3.    Reveals weaknesses of management’s.
4.    The strengths and weaknesses of the internal control system are also seen.
5.    It acts as a check to the efficiency of budgetary system.
6.    Corrective measures may be initiated immediately.

Disadvantages
1.    It lowers the morale of top management.
2.    Management is unlikely to reveal its weaknesses when the auditor is present.
3.    It is difficult to identify the department that is inefficient as all of them rely on each other heavily.
5.    It could lead to frustration of management as it can easily be biased.
6.    It is difficult to monitor human actions and responses.