The focus of Propriety Audit is on the efficiency, the authority structure, rules and regulations and monetary discipline as well as the protection of public interest. Propriety audit is all about the making the actions and the decisions of the executives and management of the unit or an organization.
Propriety audit is based on the authentication of transactions in the best interest of public and normally established standards of conduct. The term “propriety” is defined finely to understand its purpose and end results. It says “the ‘propriety’ that meets the tests of public interest. It is standards of conduct and generally accepted customs, and mainly as valid to professional performance, necessities of government regulations and professional codes”.
Rather than to rely on vouchers, documents, and evidences, it shifts the importance to the essence of the transactions and looks into the aptness thereof on a consideration of financial caution, public interest, and prevention of uneconomical spending.
Accordingly, propriety audit is concerned with study of managerial actions and resolution bearing on economic and profit and loss situation of the company with special regard to public interest and commonly accepted customs, and standards of conduct.
Whether all the offers have worked out with the equal attention in respect of spending incurred from public money, as a person of general normal caution would implement in respect of expenses of his own money under similar circumstances.
Propriety audit needs the business involving expenses to conform to general principles as under:
Management audit is considered about to be a course of self-governing review of the management activities at all the levels of management to determine the efficiency, functions, and attainment of the policies and modus operandi as compared to standards put by the organization. We lend a hand to the entity in self-determining examination of the procedure and operating processes approved by the organization and its observance. The Management audit depend upon auditor mind set and/or the purpose of management audit.
As the management has big role in deciding the growth rate and about the failure or success of the company, we can call management the lifeblood of an entity. It is crucial for the organization to improve the management effectiveness and efficiency to gain competitive advantage in today business world.
In today business world management play very important role for the success of failure of business. Management is the life blood of every organization. So if organization want to gain competitive advantage then it should improve their management efficiency and effectiveness.
Followings are the objectives of management audit: