Property audit stand for verification of transactions on the test of public interest, company accepted customs and standards of conduct. Propriety audit requires the transactions and more particularly expenditure to confirm to certain general principles. These principles are:
i. that the expenditure is not prima facie more than the occasion demands and that every official exercise the same degree of vigilance in respect of expenditure as a person of ordinary prudence would exercise in respect of his own money.
ii. that funds are not utilized for the benefit of a particular person or group of persons and
iii. that apart from the agreed remuneration or reward, no other avenue is kept open to indirectly benefit the management personnel, employees and others.