601. Meaning of 'management audit'.

A 'management audit'1 is an audit carried out for the purposes of ascertaining:

  1.  

    (1)     the extent to which the obligations of the landlord2 which:

    1.  

      (a)     are owed to the qualifying tenants3 of the constituent dwellings4; and

    2.  

      (b)     involve the discharge of management functions5 in relation to the relevant premises6 or any appurtenant property7,

are being discharged in an efficient and effective manner8; and

  1.  

    (1)     the extent to which sums payable by those tenants by way of service charges9 are being applied in an efficient and effective manner10.

In determining whether any such obligations as are mentioned in head (1) above are