Checked against the official source:
The owner makes decisions based on management reporting, which, unlike statutory financial statements, is not checked by anyone from outside. A management audit closes this gap: it assesses whether internal reports reflect reality.
Status of the service
This is an initiative audit: the client, which may be the company, the owner or a participant holding at least 5%, determines the focus and scope (Articles 36 and 38 of Law ZRU-677). The result is a report with findings and recommendations, not an audit report on the reliability of the financial statements (Article 39). Business analysis and management consulting are related services an audit firm may provide (Article 33).
What is assessed
- The methodology for preparing management reporting and its consistency with accounting data
- Completeness of cost allocation when calculating the profitability of business lines
- Segregation of authority and decision-making levels
- The procedure for approving budgets and monitoring their execution
- Reliability of the key indicators management relies on
A typical finding
The most common discrepancy is business-line profitability calculated without part of the indirect costs. A business line looks profitable in the management report and loss-making once all costs are allocated; for years, decisions are made on a distorted picture.
Check your management data
We will reconcile your management reporting with accounting data and show you where it is distorted.
Go to the Initiative Audit serviceFrequently asked questions
How does it differ from a financial audit?
A financial audit checks external financial statements for compliance with standards. A management audit checks internal data for fitness for decision-making; there is no single standard here, and the criteria are agreed with the client.
Is an audit report issued at the end?
No, the result is a report with findings and recommendations; an audit report on the reliability of financial statements (Article 39 of Law ZRU-677) is issued following an audit of financial statements.
See also
- The Management Letter After an Audit
- LLC Audit in Uzbekistan: When It Is Mandatory and What the Auditor Checks
- Mandatory audit in Uzbekistan: who must, deadlines, fines and cost
- Key Audit Matters (KAM) in the Auditor’s Report
- Government Subsidies for Businesses in Uzbekistan: Accounting and Tax
- Tax on the sale of a share in an LLC: residents and non-residents
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