Arthur Anderson has conducted a proprietary audit of ITC Global, the loss-making trading arm of the tobacco major ITC Ltd. The internal audit is aimed at pin-pointing specific causes for the trading company's huge losses.
A proprietary audit of a firm is conducted on the advice of its management. It's an internal exercise where the terms of reference of the audit are set by the management. The audit firm reports its findings only to the management which is not obliged to share the report with the shareholders.
:"The proprietary audit is all over. They (the auditors) came and visited all our sites" An ITC Global executive in Singapore told Business Standard. However, he did not elaborate on the audit. The auditors are believed to have ascertained the propriety of the deals undertaken by the trading company.
