Auditing and EthicsQuestion 5673 of 212
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1. ______ is conducted to ensure that the various programmes, schemes, and projects where large financial expenditure have been incurred are run economically and are yielding results expected of them.

Options

APropriety Audit
BAudit against Rules and Orders
CPerformance Audit
DAudit against Provision of funds (2 Marks) AUDITING AND ETHICS
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Correct Answer

Option CPerformance Audit

All Options:

  • APropriety Audit
  • BAudit against Rules and Orders
  • CPerformance Audit
  • DAudit against Provision of funds (2 Marks) AUDITING AND ETHICS

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Detailed Solution & Explanation

Correct Answer: Option **C**

Explanation:
**Performance Audit** (also referred to as efficiency, economy, and effectiveness audit) is conducted by the Comptroller and Auditor General (C&AG) of India to ensure that the various programmes, schemes, and projects where large financial expenditures have been incurred are run economically and are yielding the results expected of them.

Let's understand the different types of government audits:
1. **Performance Audit**: Assesses whether the government programs or public enterprises are achieving their objectives economically, efficiently, and effectively. It deals with evaluating the results and performance of expenditures.
2. **Propriety Audit**: Investigates whether public money is spent with financial propriety, ensuring that expenditure is not wasteful or for private interest, and conforms to high standards of financial morality.
3. **Audit against Rules and Orders**: Verifies that the expenditure conforms to the relevant provisions of the Constitution, laws, and financial rules/orders.
4. **Audit against Provision of Funds**: Ensures that the expenditure has been incurred for the specific purpose for which the grant/appropriation was made and within the sanctioned limit.

Since the question refers to ensuring that programs are run economically and are yielding expected results (effectiveness), it describes a Performance Audit.

Hence, **Option C** is the correct answer.

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