Page 282 - CA Inter Audit PARAM

CA Ravi Taori

Government Audit & its objectives Old Course --
QNO #Unique (M21R/SM20/SM21/M21E/M22M/N22M)
GA.00
New Course—(SM25)
Define Government Audit & explain its objective’s
➢ Government Audit is the objective, systematic, professional and independent examination of
financial, administrative and other operations of a public entity ,made subsequently to their
execution for the purpose of evaluating and verifying them, presenting a report containing
explanatory comments on audit findings together with conclusions and recommendations for future
action by the responsible officials and in the case of examination of financial statements, expressing
the appropriate professional opinion regarding the fairness of the presentation.
➢ OBJECTIVES:-
Accounting for Public Funds:- It serves as a mechanism or process for public accounting of
government funds.
Appraisal of Govt. Policies: -It also provides public accounting of the operational, management,
programme and policy aspects of public administration as well as accountability of the officials
administering them.
Corrective Actions: - Audit observations based on factual data collection also serve to highlight
the lapses of the lower hierarchy, thus helping supervisory level officers to take corrective
measures.
Administrative Accountability:- The main objective of audit is a combination of ensuring
accountability of administration to legislature and functioning as an aid to administration

QNO— Consolidated Fund of India New Course – (SM25)
GA.00.60 Bhaskar CNO - GA.020
It is the duty of Comptroller and Auditor General of India to audit and report on all expenditure from
the Consolidated Fund of India and of each State and of each Union Territory having a Legislative
Assembly and to ascertain whether the moneys shown in the accounts as having been disbursed were
legally available for and applicable to the service or purpose to which they have been applied or
charged and whether the expenditure conforms to the authority which governs it. Discuss, in above
context, what is understood by “Consolidated Fund of India”? What is its importance?
Answer As per Article 266, Consolidated Fund of India consists of all the revenue received from direct and
indirect taxes, all the loans taken by the Govt. of India and all the amount of repayment of loans
received by the Govt. of India. Its importance lies in the fact that all government expenditure is incurred
from this fund. No moneys out of the Consolidated Fund of India shall be appropriated except in
accordance with law and for the purposes and in the manner provided in the Constitution

Duties of C&AG Old Course --
QNO
GA.01 Bhaskar CNO - GA.040 (P16M/SM17/M17R/N17M/M18R/N19R/M19R/SM20/SM21)
New Course—(SM25)
Explain in detail the duties of Comptroller and Auditor General of India
Answer ➢ To compile and submit Accounts:
The C & AG shall compile the accounts relating to the annual receipts and disbursements of the
Union / State / Union Territory. He shall submit those accounts to the President / Governor /
Administrator.

➢ To Audit and report:
The C&AG shall audit and report on-
All expenditure from consolidated fund of India /state /union territory.
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