Appraisal of management decisions involves a number of steps. Enumerate them.

Steps in Appraisal of Management Decision In appraisal of management decision the following steps should be considered by the auditor: Whether the management decision are well defined or not. Whether the Objectives and desired output has been been set out clearly and relate explicitly to the policy or strategy adopted by the company to help in post event evaluation of the management decisions. Ideally the objectives of every management decision should be specific, measurable, agreed, realistic and time-bound. While taking decision, whether the management has considered the effect of the associated risks; time availability; scale and location; scope for alternative arrangements with other public bodies; degree of involvement of regulators and civic bodies; capacity of the market to deliver the required output; alternative asset uses; use of new or established technology; and environmental issues. In case of the major investment decision, whether various possible options were considered and whether such potential options are analyzed and reviewed in terms of value, costs, benefits, risk and uncertainties of options. Whether the options are selected after due analysis and a consensus decision is taken. Whether the selected alternative has been implemented efficiently. Whether ongoing review of management decision control and evaluation system is monitored.