Who can perform a management audit?

Who can perform a management audit?

• A. Only the treasurer
• B. Only residents
• C. Only the auditor
• D. The board and manager together or a third-party management consultant

Answer: (D)

A management audit examines how the association is run—the governance decisions, operational processes, internal controls, and compliance with policies. It can be performed by those who oversee and manage the association, namely the board and the manager working together, to review and improve how things are being handled. They may also bring in a third-party management consultant to provide an independent, objective assessment and specialized expertise. This broader approach ensures both accountability and practical guidance for improvement. The other possibilities don’t fit as well because a single person like the treasurer doesn’t typically have the authority or full scope to conduct a comprehensive management audit; residents generally lack formal authority and necessary expertise for a formal audit; and limiting the audit to the auditor focuses only on financial statements, not the wider management practices.

A management audit examines how the association is run—the governance decisions, operational processes, internal controls, and compliance with policies. It can be performed by those who oversee and manage the association, namely the board and the manager working together, to review and improve how things are being handled. They may also bring in a third-party management consultant to provide an independent, objective assessment and specialized expertise. This broader approach ensures both accountability and practical guidance for improvement.

The other possibilities don’t fit as well because a single person like the treasurer doesn’t typically have the authority or full scope to conduct a comprehensive management audit; residents generally lack formal authority and necessary expertise for a formal audit; and limiting the audit to the auditor focuses only on financial statements, not the wider management practices.