Scottish Enterprise denied the claims

The Scottish Conservatives said the "independent audit" was necessary to restore public confidence in the agency after recent allegations of financial mismanagement.

Scottish Enterprise denies that it has mishandled public money and again stated that it would welcome any inquiry into its management practices.

Last week it was alleged that the quango is failing to meet targets for financial savings, spending millions using private consultants and in danger of losing out on �24m of European funding.

On Monday, the Scottish Tories economy spokeswoman Annabel Goldie wrote to the Auditor General Robert Black, asking him to formally investigate.

It is important that the necessary flexibility is preserved to act on matters such as this when the sums of public money involved are considerable and public confidence has to be restored Annabel Goldie MSP, Scottish Conservative Party

In the letter, Ms Goldie said: "I am very concerned about the recent media disclosures concerning Scottish Enterprise alleging slippage of programmes, laxity of management and unexpectedly high levels of consultancy fees.

"As you will be aware in the chamber I have raised concerns about the enterprise network post devolution and asked a parliamentary question about staffing levels and consultancy activity and related budget.

"It seems to me now vital in the public interest that an independent audit be carried out into the activities of Scottish Enterprise to demonstrate what money has been expended, for what purposes and to what net effect.

"I realise that your work schedule may be full but it is important that the necessary flexibility is preserved to act on matters such as this when the sums of public money involved are considerable and public confidence has to be restored."

A spokesman for the auditor general confirmed a request for an inquiry had been received.