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    Question

    The Audit undertaken to check the implications of the

    top management decisions, having a financial bearing is otherwise known as:
    A Efficiency Audit Correct Answer Incorrect Answer
    B Propriety Audit Correct Answer Incorrect Answer
    C Operational Audit Correct Answer Incorrect Answer
    D Cost Audit Correct Answer Incorrect Answer

    Solution

    Propriety Audit is also known as Compliance Audit or Financial Audit. It focuses on reviewing and evaluating the financial decisions and actions of the top management to ensure that they comply with established laws, regulations, and internal policies. The primary objective of a Propriety Audit is to assess the propriety, legality, and financial prudence of the management's decisions and expenditures. It aims to ensure that the financial transactions and operations are conducted in a responsible and appropriate manner, with proper authorization and adherence to relevant rules and procedures.

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