Page 318 - CA Final PARAM Digital Book.

Committees, written answers are obtained from the Department / Ministry concerned
and are sometimes incorporated in the Reports presented to the Parliament / State
Legislature.

This ensures that the Audit Reports are not taken lightly by the Government, even if the entire
report is not deliberated upon by the Committee.
Author’s Note

Explanation & Corresponding Summary

There are 2 committees, Public Accounts Committee and Committee on Public Sector Undertakings
which read, study reports of CAG on government department and government corporations and then
ask for explanations from ministries.

Now answer
(Intro same as question)
The Comptroller & Auditor General of India plays a key role in the functioning of the financial
committees of Parliament and the State Legislatures. He has come to be recognized as a ‘friend,
philosopher and guide’ of the Committees.

Step 1: - Reports of CAG are discussed in Financial Committees & Questions are asked to ministries
His Reports generally form the basis of the Committees’ working, although they are not precluded from
examining issues not brought out in his Reports;
Step 2: - Replies from ministries are received and CAG checks correctness of replies and helps
committees to understand there replies
He scrutinizes the notes which the Ministries submit to the Committees and helps the Committees to
check the correctness of submissions to the Committees and facts and figures in their draft reports;

Step 3: - Committees send their reports to parliament
The Financial Committees present their Report to the Parliament/ State Legislature with their
observations and recommendations.

Step 4: - Ministers has to submit action taken report to parliament as per recommendations of
committees
The various Ministries / Department of the Government are required to inform the Committees of the
action taken by them on the recommendations of the Committees (which are generally accepted) and
the Committees present Action Taken Reports to Parliament / Legislature;

Extra Points
(Treatment of Confidential Audit Reports)
In respect of those Audit Reports, which could not be discussed in detail by the Committees, written
answers are obtained from the Department / Ministry concerned and are sometimes incorporated in the
Reports presented to the Parliament / State Legislature.

(Because of these committee’s government doesn’t take CAG reports lightly)
This ensures that the Audit Reports are not taken lightly by the Government, even if the entire report is
not deliberated upon by the Committee.

QNO Draft Audit Criteria Old Course-- (SM21, N21M)
605.000 TITANIUM CNO – PSU.220
You have been appointed as auditor of a AKY Ltd. After having determined the audit objectives, now you

have been requested to draft audit criteria. What are the sources that you will use while doing the task?
➢ Determining Audit Criteria
Audit criteria are the standards used to determine whether a program meets or exceeds
expectations. It provides a context for understanding the results of the audit. Audit criteria are
reasonable and attainable standards of performance against which economy, efficiency and
effectiveness of programmes and activities can be assessed.
The audit criteria may be sought to be obtained from the following sources:
• procedure manuals of the entity.
• policies, standards, directives and guidelines.

www.auditguru.in PARAM 15.10 | P a g e