Public expenditure:
As the modern government symbolizes a welfare state, the responsibility of the government is to bring on maximum social well-being. In addition to this, it has to execute different other functions, that require heavy expenditures. The basic principles governing the flow of government funds into distinct spending streams and the techniques of incurring expenses on various activities.
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There is an assumption in accounting that money, that is the unit of measurement, will stay stable over time. However, this is an unrealistic assumption as the value of money changes. Generally, it is inflation that is the culprit.
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It might be useful to make clear the role and composition of the board of directors. The board governs the company for the shareholders and is accountable for promoting their interests.
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Cost audit is beneficial to management, statutory auditor, cost accountant, and all other persons interested in the organisation.
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