Management Audit

Were the numbers...accurate? Fair? Reflective of truth, reality, and GAAP? That's the determination in a management audit. That is, a financial audit really just covers the 10K, 10Q, and other filings for public companies, like a special 8K filing (not the breakfast cereal). A management audit covers things like amounts spent on air travel from Dallas to JFK. Like...did the CFO really need to fly first class? Did she need to stay at The Four Seasons? And what is this dinner bill for $812 for four people? Are vendors getting kickbacks? Are supplies fairly and equitably distributed among divisions in the company?

Tons of questions, little time. Haughty accountants aggressively press for the details. Evidence of even small wrong-doings usually leads down a path of the discovery of other wrong-doings, and then there's a fan which is struck repeatedly by human waste.