Archive | Auditing

Efficiency and Propriety Audit | Auditing

Efficiency is the ratio of a system’s outputs to inputs, and is strictly a limiting example of an idea of productivity in that an efficient system is one in which this ratio is optimal. Two categories of efficiency should be noted: Economic efficiency, which arises when the cost of inputs is minimized for a given […]

Management Audit: Meaning and Objective | Auditing

In this article we will discuss about:- 1. Meaning of Management Audit 2. Objective of Management Audit 3. Scope 4. Weaknesses. Meaning of Management Audit: “Management audit can be defined as an objective and independent appraisal of the effectiveness of managers and the effectiveness of the corporate structure in the achievement of company objectives and […]

Propriety Audit: Concept and Requirements

After reading this article you will learn about Propriety Audit:- 1. Concept of Propriety Audit 2. Propriety Requirements and Propriety Elements of Reporting in the Indian Company Law. Concept of Propriety Audit: Propriety audit may be defined as ‘Audit concerning the decisions of the executives, with an emphasis on public interest, financial discipline, basically to […]

Social Audit: Concept and Objectives

After reading this article you will learn about Social Audit:- 1. Concept of Social Audit 2. Objectives of Social Audit. Concept of Social Audit: Although no unanimous definition has yet been evolved, the term Social audit, in its simple sense, may be defined as the audit of the social responsibilities that should have been discharged […]

Difference between Internal Audit and Statutory Cost Audit

This article will help you to differentiate between Internal Audit and Statutory Cost Audit. Difference # Internal Audit: A. Scope: 1. (a) The work of audit under the system is mainly performed by the employ­ees, i.e. internal staff of the company. (b) The work can be done by any person having training and skill on […]

Operation Audit: Concept and Objectives

After reading this article you will learn about Operation Audit:- 1. Concept of Operation Audit 2. Objectives of Operation Audit. Concept of Operation Audit: William Leonard describes operational auditing as a comprehensive and constructive review of organisational structure or components thereof, i.e. method of operation and use of physical facilities’. Operational Auditing is essentially a […]

Operation Audit: Concept and Objectives

After reading this article you will learn about Operation Audit:- 1. Concept of Operation Audit 2. Objectives of Operation Audit. Concept of Operation Audit: William Leonard describes operational auditing as a comprehensive and constructive review of organisational structure or components thereof, i.e. method of operation and use of physical facilities’. Operational Auditing is essentially a […]

Difference between Internal Auditor and Cost Auditor

This article will help you to differentiate between Internal Auditor and Cost Auditor. Before a general discussion on the matter is made it should be pertinent to note that an internal auditor: (i) Is an employee of the company, (ii) Has to be loyal to the company by responding to the uses and requirements of […]

Management Audit: Considerations and Selection

After reading this article you will learn about Management Audit:- 1. Fundamental Considerations for Management Audit 2. Selecting the Auditors for Management Audit. Fundamental Considerations for Management Audit: Management audit is conducted in the same way as that of a scientific investigation. The basic considerations of a management auditor for the efficient conduct of audit […]

Circumstances Leading to Development of Management Audit

This article throws light upon the eight major circumstances leading to development of management audit. The circumstances are: 1. The Size, Scale and Complexity 2. Need to Improve Productivity 3. Granting Financial Subsidy 4. Take-Over Bids 5. Societal Need 6. Need for Periodical Check-Up 7. Foreign Collaboration 8. Equity Participation. Circumstance # 1. The Size, […]

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