Auditing and Assurance revision question and answer

Auditing and Assurance Revision Questions and Answers
Distinguish between the following:
Propriety Audit and Performance Audit

Answer

 

Propriety Audit Performance Audit
Under this audit, it is required to be seen that the expenditure is incurred with due regard to broad and general principles of financial propriety. The auditor aims to bring out cases of improper, avoidable expenditure even though the expenditure has been incurred in conformity with the existing rules and regulations. Audit aims to secure a reasonably high standard of public financial morality looking into the wisdom, faithfulness and economy of transactions. This involves that the various programs, schemes and projects where large financial expenditure has been incurred are being run economically and are yielding results expected of them. Efficiency-cum- performance audit, wherever used, is an objective examination of the financial and operational performance of an organization, program, authority or function and is oriented towards identifying opportunities for greater economy and effectiveness.



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