OUR OWN PUBLICATION FROM 1ST JULY, 2018 FOR B.COM

1. B.COM FIRST SEMESTER COMPLETE NOTES (CHOICE BASED) WITH SOLVED FINANCIAL ACCOUNTING BOOK
2. B.COM 3RD SEM COMPLETE NOTES WITH SOLVED BOOKS OF:
*ADVANCED FINANCIAL ACCOUNTING
*BUSINESS STATISTICS SOLVED PAPERS OF LAST 7 YEARS
* FINANCIAL MANAGEMENT BOOK
3. B.COM 5TH SEMESTER COMPLETE NOTES WITH SOLVED BOOKS OF MANAGEMENT ACCOUNTING OF JAIN AND NARANG

Sunday, May 11, 2014

Proprietary audit

Propriety audit is a method of audit which verifies the reasonableness of expenditure incurred by an organization and is not detrimental to public interest. This audit is generally applicable to the government organizations.
According to E. L. Kohler, " Propriety means that which meets the test of public interest, commonly accepted customs and standards of conduct. Propriety audit is an audit in which various actions and decisions are examined to find out whether they agree in public interest and whether they meet the standards of conduct."
Propriety audit not only determines the accuracy of books of accounts but also justify the expenditure in term of propriety and reasonableness. Therefore, this audit tests the public interest and evaluates its financial propriety in relation to standards or commonly accepted customs. Propriety audit is generally applicable to the government organizations as it involves a huge public money. So, public accountability is the main criteria of propriety audit. It evaluates the efficiency and prudence of government department and its propriety in relation to public money. The scope and objectives are:

a)      Confirm collection of revenue: Propriety audit helps to assess whether revenue are properly collected and recorded in the books of accounts.
b)      Helps to detect fraud and misrepresentation: This audit helps to judge whether there is any fraud and misrepresentation of funds.
c)       Wastage of funds: With the help of propriety audit wastage of public funds can be determined and also its utilization can be verified.
d)      Verify justification of expenditure: Verify Justification of expenditure in relation to generally accepted standards and customs.

e)      Not detrimental: It verifies that the contracts made by the organization with the third parties are not detrimental to the public interest.