In the audit of a government department, the auditor examines whether expenditure incurred was not prima facie more than the occasion demanded and whether public money was used for the benefit of a particular person. This is known as:

Correct answer: C) Propriety audit

Explanation

Propriety audit looks beyond legality to whether expenditure meets canons of financial propriety: no more than the occasion demands, exercising the same vigilance as a person of ordinary prudence would with his own money, no sanction for one's own benefit, and public money not used for a particular person or section. It is an important feature of government audit.