What Is Propriety, Operational, Cash And Joint Audit?


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Amen Bukhari answered
Propriety audit is concerned with management functions relating to income and expenditure of the concern. The income and expenditure is checked. The examination shows the proper or otherwise use of business funds. The large scale companies are interested in such type of audit. The operational audit is concerned with review of departmental operation as service management. The operational audit relates to production, procedure, designs, storage, transport, quality control, repairs, sales, employees, finance, research and development.

Cash audit relates to cash transactions only. The receipts and payments of business is examined in detail. There may be doubt of error or fraud. The auditors can co9llect any information he likes but his main work is concerned with cash books and bank accounts.
Joint audit is conducted by two independent auditors. An enterprise may have two business places. The management can engage two auditors. One auditor can examine the accounts at one place. The other auditor can check the record of second place. The auditor can present joint report.

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