Propriety audit
Topic: Constitutional Bodies: UPSC, CAG, Finance Commission and Others · NCERT: Beyond NCERT
Meaning
A propriety audit is a CAG audit that goes beyond legality. It asks whether spending was wise, honest and economical. It is discretionary, which means the CAG chooses when to do it. It tests spending against canons of financial propriety (rules of correct conduct), such as:
- spending no more than the occasion needs;
- no officer using their power for personal gain;
- not spending public money to benefit one person or group.
Example
A department might buy luxury furniture for an office with full sanction and within its budget. A compliance audit may find nothing wrong. A propriety audit can still question whether such spending was more than the occasion needed.
Don't confuse with
- Compliance audit: this is about rules being followed and is a routine duty. Propriety audit is about wisdom and is optional.