Question
The Audit undertaken to check the implications of the
top management decisions, having a financial bearing is otherwise known as: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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