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CS Professional · Internal and Forensic Audit · Special Points relating to Internal Audit in various Entities

An internal auditor of a State government department is asked to assess whether a road-building programme achieved its objectives at minimum cost and with proper use of resources, beyond mere checking of vouchers. Which type of audit approach is being applied?

This is a performance or value-for-money audit with a propriety element. It examines whether the programme was economical, efficient and effective in meeting its objectives, rather than only checking that vouchers and accounts are arithmetically correct.

  1. APropriety and value-for-money (performance) auditCorrect
  2. BStatutory financial audit of the balance sheet only
  3. CStock verification audit
  4. DCost record audit of a manufacturing unit

Explanation

Assessing economy, efficiency and effectiveness goes beyond voucher checking and is the essence of performance or value-for-money audit, along with propriety. Statutory balance sheet audit and stock verification do not test programme outcomes.

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