Page 285 - CA Inter Audit PARAM

CA Ravi Taori
• Finance Bill--- Passed both in Lok Sabha & Rajya Sabha)
• Government Employee Remuneration
Rules and orders regulating the conditions of service, pay and allowances, and pensions of
government servants.
(E.g., Pay Commission is set up intermittently by Government of India and gives its
recommendations regarding changes in salary structure of its employees. Since India's
Independence, seven pay commissions have been set up on a regular basis to review and
make recommendations on the work and pay structure of all civil and military divisions of
the Government of India. Headquartered in Delhi, the Commission is given 18 months from date of its
constitution to make its recommendations.)

➢ CAG doesn’t frame rules & regulation, but he examines rules & regulation
It is the function of the executive government to frame rules, regulations and orders, which are to be
observed by its subordinate authorities. The job of audit is to see that these rules, regulations and
orders are applied properly by the subordinate authorities. It is, however, not the function of audit to
prescribe what such rules, regulations and orders shall be. But it is the function of audit to carry out
examination of the various rules, regulations and orders issued by the executive authorities to see
that:
• they are not inconsistent with any provisions of the Constitution or any laws made
thereunder; 1
• they do not come in conflict with the orders of, or rules made by, any higher authority; and
2
• in case they have not been separately approved by competent authority, the issuing
authority possesses the necessary rule-making power. 3
• they are consistent with the essential requirements of audit and accounts as determined by
the C&AG; 4
Audit of expenditure against regularity is of a quasi-judicial type of work performed by the audit authorities.
It involves interpretation of the Constitution, statutes, rules, regulations and orders. The final power of
interpretation of these, however, does not vest with the C&AG. Work is like courts where they conclude
whether activities are as per law or not.

QNO Audit of Sanctions Old Course-- (N20R)
GA.13 Bhaskar CNO - GA.100
The auditor of a Govt Company has to ensure that each item of expenditure is covered by a sanction, either

general or special, of the competent authority. Explain
Answer Audit of sanctions –
The auditor has to ensure that each item of expenditure is covered by a sanction, either general or special, of
the competent authority. The audit of sanctions is directed both in respect of ensuring that the expenditure is
properly covered by a sanction, and also to satisfy that the authority sanctioning it is competent for the
purpose by virtue of the powers vested in it by the provisions of the Constitution and of the law, rules or orders
made thereunder, or by the rules of delegation of financial powers made by an authority competent to do so.

QNO Propriety Audit Old Course -- (N16E/P16M/N17E/N19M/N19E/N20E/N21M/N23R)
GA.15 Bhaskar CNO - GA.140 New Course – (M24M)
Audit against the propriety seeks to ensure that expenditure confirms to certain principles.
OR
What are the focus points in doing propriety audits by C&AG as regards government expenditure?
OR

Write a Short notes Propriety audit
OR
Public moneys should not be utilised for the benefit of a particular person or section of the community. List
out the exceptions to this rule while audit against propriety.
Answer
➢ Focus Points for Doing Propriety Audits of Government Expenditure:
www.auditguru.in 9.11