This document discusses cost-benefit analysis (CBA), which is an economic evaluation technique that quantifies in monetary terms the positives (benefits) and negatives (costs) of a project or intervention. CBA follows principles like using a common unit of measurement, valuing human life, avoiding double counting, and evaluating costs like healthcare services/supplies and benefits that are difficult to quantify. Audit techniques are also examined, like financial audits that independently examine vouchers and accounts to verify accuracy and identify unauthorized transactions. Budget auditing and nursing audits are specific types that are discussed.

2. An approach to make economic decisions of any kind.
Economic evaluation technique that measures all the
positive (benefits) and negative (cost) consequences
of an intervention or programme in monetary terms.
Or
It is a process for evaluating the merits of a particular
project in a systematic way in terms of cost &
benefits of the project.

3. • Cost- it is the value of money that has
been used up to produce something
& hence is not available to use
anymore.
• Benefit- monetary values of desirable
consequences of economic policies or
decisions.

4. PRINCIPLES OF CBA
COMMON UNIT OF MEASUREMENT
VALUATION OF HUMAN LIFE
PARTICULAR SYUDY AREA
AVOID DOUBLE COUNTING

5. TECHNIQUES OF CBA
COST
Cost of healthcare
services is
estimated.
e.g supplies,
expenditure,
materials & their
maintenance
BENEFIT
Can not be
expressed in
monetary terms.
eg morbidity,
mortality

6. Systematic & critical examination to
examine & verify.
CRITICAL REVIEW
DETERMINE EFFECTIVENESS
ACCURACY & ADEQUACY
EXTENT OF COMPLIANCE
IDENTIFICATION OF UNAUTHORISED &
UNSOUND TRANSACTIONS

7. AUDIT
Nursing audit
is the assessment
of quality of
nursing care or
related to
planning, delivery
& evaluation of
care.
Budget audit
is verification of
accounting,
determining the
accuracy &
reliability of
accounting,
statements &
reports.

8. STATUTORY AUDIT
COST AUDIT- To verify the accuracy of accounts in
accordance with established norms.
TAX AUDIT- Compulsory audit of accounts under income
tax act, 1961.
BALANCE SHEET AUDIT- Verification of details in balance
sheet for ascertaining profit.
SPECIAL AUDIT-Can be done by central govt. at any time
under company's act , 1956
FINANCIAL AUDIT- Independent examination of
vouchers & account book.

9. PHASES OF BUDGET AUDITTING
PLANNING
COMMUNICATE RESULTS
CONDUCT THE AUDIT
AUDIT FOLLOW UP

10. FINANCIAL AUDIT TECHNIQUE
VOUCHING- inspection for authorization, recording &
entry book.
CHECKING & TICKING- with colored pencils, pens or
rubber stamps.
TEST CHECKING- random sample checking
AUDIT NOTES- careful & precise note of discoveries in
audit
QUESTIONNAIRES- about important elements of cost,
asked to managers.,