Page 283 - CA Inter Audit PARAM

CA Ravi Taori
All transactions of the Union / State relating to Contingency Funds and Public Accounts;
All trading, manufacturing, Profit and Loss Accounts and Balance Sheets and other
subsidiary accounts kept in any department of the Union / State.

➢ To audit Receipts and Expenditure:
The C&AG shall audit and report on all receipts and expenditure of anybody or authority, which has
been substantially financed from the Consolidated Fund of India / State / Union Territory.
Note; For this purpose, a body or authority shall be treated as substantially financed if the amount of
grant or loan in a year is - (a) greater than Rs.25 Lakhs and (b) such amount is greater than 75% of
the total expenditure of that body or authority.

➢ To audit Grants or Loans:
He shall audit specific purpose loan or grant given to anybody other than a foreign state or
international organization, out of the consolidated fund of India /state /union territory.

➢ To audit Receipts of Union or States:
The C&AG shall audit all receipts payable into the Consolidated Fund of India / State / Union Territory.
He shall satisfy himself that the rules and procedures are designed to secure an effective check on
the assessment, collection and proper allocation of revenue and are being duly observed.

➢ To audit Accounts of Stores and Stock:
The C&AG shall have the authority to audit and report on the accounts of stores and stock kept in
any office or department of the Union / State.

➢ To audit accounts of Government Companies and Corporations:
C&AG shall exercise such powers and observe such duties as per the provisions of the Companies
Act, 1956, in relation to Government Companies and Corporations.
Author’s Note:
The shortcut the duties of C&AG
SAG AR
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Audit of Expenditure-All Old Course -- (P16M/M16R/N16M/M17M/M17R/M18R/N18M/
QNO
GA.05 Bhaskar CNO - GA.060 M19E/N19R/N19E/M20R/M21M/M22M/M23R)
New Course – (M24M)
An audit of Expenditure is one of the major components of Government Audit. In the context of
‘Governmen1Mt Expenditure Audit’, write in brief, what do you understand by:
(i) Audit against Rules and Orders
(ii) Audit of Sanctions
(iii) Audit against Provision of Funds
(iv) Propriety Audit
(v) Performance Audit.
OR
Audit of government expenditure is one of the major components of government audit conducted by the
office of C&AG. The basic standards set for audit of expenditure are to ensure that there is provision of funds
authorised by competent authority fixing the limits within which expenditure can be incurred. Explain those
standards.
OR
The audit of Government expenditure is one of the major components of Government audit. Briefly explain
the basic standards set in relation to audit of Government expenditure.
Answer ➢ Audit of Government Expenditure
It is one of the major components of government audit conducted by the office of C&AG. The basic
standards set for audit of expenditure are to ensure that there is provision of funds authorized by
competent authority fixing the limits within which expenditure can be incurred. Briefly, these
standards are explained below:

Audit against Rules & Orders:

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