A Study On The Balanced Scorecard And The Application Of BSC In Management Audit

Since the book named Management Audit 1st (1932) by Britain expert T. G. Ross was published, there are more than 70 years in the development history of management audit. What measures does management audit take for the management accountability measure? How can management audit improve management? The academic circle and practice circle have paid attention to these questions. This paper tries to propose that the Balanced Scorecard (BSC) can be applied in management audit to solute these questions. This paper consists of five chapters. Chapter 1 is literature review that reviews the related oversea and domestic literature. Chapter 2 discusses the BSC theory. Firstly, it introduces the BSC comprehensively and systematically and expounds in detail the four perspectives of BSC . Secondly, it analyses the feature of BSC and concludes the most important features: one is focus-on-balance, another is focus-on-strategy. Lastly, it analyses some controversy about BSC. Chapter 3 discusses why BSC can apply in management audit. Firstly, it expounds the nature of BSC and management audit from accountability. Based on their nature, it discusses the scope, function and performance measures of both. Then it concludes the BSC is fit to apply in management audit. Secondly, it elaborates in detail the BSCs in levels of management audit. Chapter 4 discusses the case of Philips, introduces the BSC in Philips and expounds how to use the BSC methodology in management audit. Chapter 5 summarizes how BSC is being applies in management audit from the performance measures and management improvement. The particular contribution of this paper is to illustrate why and how BSC can be applied in management audit by using Philips case. This paper wants to contribute to the performance measures system of management audit in theory and just propose some general thought and suggestion on how to build the performance measures of management audit in practice. This paper expounds how to use the strategic management of BSC to perform better the constructive function of management audit.