Managememt Accounting-A Comprehensive System for Supporting Scienfic Audit

Abstract

Management accounting uses various information drawn from different systems besides accounts in supporting enterprise's risk assessment, strategic planning and performance reviews. Today, it not only complements traditional or financial accounting, but also serves as a specialized information link between accounting and management. It has widened enough to include scientific findings like those of Techno-Commercial Analysis, Operations Research, Statistics, Works Study and Systems Analysis. Thus, Management Accounting today is a comprehensive system that can be used for strengthening all-round performance besides statutory compliance. It is different from traditional or financial accounting wherein it is adopted for internal use with futuristic outlook and not for mere statutory disclosures&historical records. It is a growing discipline and not bound by fixed principles. Therefore, management accounting is bound to support scientific audits, whether internal or external.