Auditing Business Strategy/Strategy Audit 
The audit of management performance with regard to its strategies helps an organisation identify problem areas and correct the strategic approaches that have not been effective so far. An assessment of the external environment shows where changes happen and where organisation's strategic management no longer match the demands of the marketplace. Based on such analysis, the organisation can improve business performance by periodically conducting such an audit.
Companies review their business plans and strategies on regular basis to identify weaknesses and shortcomings to enable a successful development plan. The strategy audit secures that all necessary information for the development of the company are included in the business plan and that the management supports it.
The core of Strategy Audit, for any corporate entity, lies on two important questions:
* How well is the current strategy working?
* How well  will the current strategy be working in future?
* How can this be evaluated in present and future?
* How urgent is there a need to change the strategy?
For this, a periodic review and evaluation of the fundamental characteristics of a strategy are necessary.
In short a strategy audit ia an examination and evaluation of areas affected by the operation of a strategic management process within an organisation.
An advantage of strategy audit is that it provides an excellent platform for discussion with the top management regarding necessary corporate actions or changes in the existing business plan. It also identifies the need to adjust the existing business strategies and plans.
Need of Strategy Audit
A strategy audit is needed under the following conditions:
* When the performance indicators reflect that a strategy is not working properly or is not producing desired outcomes.
* When the goals and objectives of the strategy are not being accomplished.
* When a major change takes place in the external environment of the organisation.
* When the top management plans:
a) to fine-tune the existing strategies and introduce new strategies and
b) to ensure that a strategy that has worked in the past continues to be in-tune with subtle internal and external changes that may have occurred since the formulation of strategies.
Adequate and timely feedback is the cornerstone of effective strategy audit. Strategy audit can be no better than the information on which it is based.
To conclude Strategy Audit includes three basic activities:
1. Examining the underlying bases of a firm's strategy.
2. Comparing expected results with actual results, and
3. Taking corrective actions to ensure that performance conforms to plans.