Types of Audit

Bookmark added to your notes.
View Notes
×

Propriety Audit

The verification of transactions and the decisions of the executives with tests on public interest, financial discipline and with conducting standard and accepted customs and particularly applied to the law requirements, professional performance, professional codes and government requirements are known to be propriety audit. Regulation for an audit against property has no such specific or precise rules. 

The meaning of propriety audit can be determined as the protection of public interest by the given rules and regulations and auditing on the financial discipline, efficiency and the authority structure. Here the decisions of the executives are final and no malpractice is done for audit home making it safe and secure for everyone. Hereby, the company assets are safeguarded and are not misused. Even the fund’s utilisations are checked thoroughly and the accuracy of financial accounts and records are obtained. The scrutiny of transactions of individuals must be detected to examine improper expenditure and also examine the sanctions of transactions before the discharge of financial responsibilities to the schemes undertaken.


Efficiency Audit  

As efficiency audit is a much broader scope, there are two schools of thought regarding this. One implies financial efficiency. The other denotes operational efficiency and executive efficiency. The qualities of the executives for efficiency audit include personality, skill, techniques, knowledge, attitude and experience.


Electric Audit

The energy flow of a building for energy conservation as the analysis of the inspection survey is known as an electric audit. The basic calculation of electricity of a building or apartment is measured for the electric audit to identify electric wastage and to resolve the necessary problems regarding it and making the environment better.


Work of Home Energy Auditors

Home energy audit or assessment as done by the home energy auditors picturizes the use of home energy.  Room by room examination for determining the comfort level at home and its efficiency is what home energy auditors do while adding to the improvements in energy-saving and renewable energy system also.


Energy Efficiency Audit

The energy efficiency audit deals with the heating and the cooling of the house by proper evaluation of professional equipment used in a house. Reduction of energy consumption is vital and that has to be audited for smooth indoor climate conditions enhancing the energy-saving measures with zero change in energy consumption.


Home Efficiency Audit

This helps with the proper guidance of the indoor condition of the house to make it efficient and pinpoint the areas of problem and find the necessary solution to it. Thermographic scan or detection of leaks and even over or under-insulated areas determine how energy efficiency gets lost in a home. The home energy efficiency audit, processed by the home energy auditors, is important also because of the proper evaluation of renewable energy system to make it comfortable for the person living at home and also in the society. The home efficiency inspection has to be done thoroughly by a blower door test to measure the home’s air exchange rate by a doorway seal and fan. This brings on the visibility of the infrared energy to determine home efficiency. 


Industrial Energy Audit

The verification with the monitoring and also the analysis of energy that is being used in an industry is done in an industrial energy audit. The audit programme helps in reviewing energy costs, conservation technologies, appropriate energy mix and energy conservation equipment. This can be classified as a preliminary audit, targeted energy audit and detailed audit.


Home Electricity Audit

The usage of electricity denotes two main costs. One of which is the electric cost denoted in money and the other is the carbon dioxide which is formed during electricity production. The audit procedure helps with the knowledge of both the electric costs and draws the necessary conclusion.


Energy Saving Audit

In the control of energy and the utility costs of any organisation, the energy efficiency audit plays a vital role.  It acts as a tool for energy management which helps in determining the energy consumption of the consumer units to obtain options regarding energy saving.


Household Energy Audit

The energy flow analysis of a building or household is determined by proper inspection and survey and also the energy conservation of a building. This process helps to reduce energy without affecting the output negatively and makes the system better and useful as far as household energy consumption is concerned. 

(Image to be added soon)

FAQ (Frequently Asked Questions)

1.  What is The Importance of An Energy Audit?

The importance of energy at home is vital because that is the place where we reside and where the duration of energy consumption is maximum. So, the residual consumption and the energy flow has to be examined for which the energy audit comes useful. It is important to save energy and make consumption less. Determination of energy loss is measured by the area of the home or office and power usage is identified accordingly. This not only saves the emission of carbon dioxide but also saves money.

2. What Are The Limitations for Propriety Audit?

 The following limitations are applicable regarding the propriety audit:

  • In the decision-making process: Decisions cannot be quick and bold since the auditor has to examine and also scrutinise the decisions of the executive causing delay and affecting dynamism.

  • Timeliness: Delay of the audit report will not be of any use and make it ineffective. Losses will be incurred causing an unprofitable contract as the report will be futile.

  • In compliance with regulations: The rules and regulations have to be abided strictly which makes the executives follow the functions according to the rules and regulations. In this case, objective or target achievement is not possible.