Definition

Efficient Auditing

Efficient Auditing is generally conducted in case of public enterprises to see whether the return on the capital outlay justifies the existence of the enterprise. Efficient audit is sometimes called propriety audit. Kohler defines it: “Propriety audit is that which meets the tests of public interest, commonly acceptable customs and standard of conduct”. It is that auditing in which the various positions and actions of the executive of a concern are examined t fine out whether they are in the interest of public and whether they meet the standards of conduct.

Share it:  Cite

More from this Section

  • Gross profit method
    Gross profit method is a method for estimating the cost of the ending inventory by applying ...
  • Earning power
    Earning power means the normal level of income to be obtained in the future. Earning power ...
  • Price-earnings (P-E) ratio
    The price-earnings (P-E) ratio is an oft-quoted measure of the ratio of the market price ...
  • Mutual agency
    Mutual agency means that teach partner acts on behalf of the partnership when engaging ...
  • Margin of safety ratio
    The margin of safety ratio is the margin of safety in dollars divided by actual (or expected) ...