Study on Enterprise´s Internal Management Auditing Based on X-efficiency Theory

Business is like a "black box", the output of different enterprises or a certain enterprise with a same input during different periods varies considerably. Management auditing is an auditing of economy, efficiency and effectiveness. The efficiency refers to production efficiency which means the relationship between output and resource consumption. But it failed to reveal the factors of enterprise internal ("black box") to output, and lacked of in-depth study of the deprive and growth in production efficiency, so as not to reveal the secret of efficiency. This paper on the basis of X-efficiency theory in economics points out the limitation of efficiency in management auditing and then amends and supplements it. Through in-depth research on enterprises internal operational behavior, the author tries to open the "black box". That is not to research only on enterprises production efficiency, but to the smallest unit in enterprises- human research and study the relationship between efforts and production efficiency. The paper points out that the efficiency in management auditing depends on the allocation efficiency and X-efficiency. The proposal of management auditing based on X-efficiency theory can properly answer the pendent problem that management auditing "is used to measure the management with efficiency", and also can provide information which can\´t be obtained in old management auditing to the decision-makers, while proposing a mathematical model different from the previous literature on X- efficiency measurement, and giving a empirical analysis