Friday, March 15, 2013

Audit of Public Sector Undertaking (PSU)

OBJECTIVE:
●There is an involvement of public fund
●These funds should be utilized considering public interest
●Normally, these funds are lavishly used by management
●Auditor has to check whether these funds have been used in a manner so as objectives behind creation of PSU
●Auditor has to check whether transactions mainly expenses confirmed to propriety norms
PROPRIETY AUDIT:
E.L. Kohler - "Propriety is that which meets the tests of public interest, commonly accepted customs and standards of conduct and particularly as applied to professional performance, requirement of law, government regulations and professional codes"
PERFORMANCE AUDIT:
It is an adjective and systematic examination for independent assessment of the performance of a government organization program or activity so as to improve public accountability.
SUPLLEMENTARY AUDIT:
CAG may supplement the report submitted by the professional auditor. CAG may issue directives to the auditors in regard to the performance of their function. The person so authorized is having same powers as auditors. Supplementary Auditor may concentrate more on efficiency aspects.
COMPREHENSIVE AUDIT:
Comprehensive audit is examination in detail of various aspects of PSU to ascertain its efficiency and effectiveness. It is conducted in addition to the professional audit which is done on an annual basis. A detailed audit program is prepared by the auditor to cover material aspects.

0 comments:

Post a Comment