Page 287 - CA Inter Audit PARAM

CA Ravi Taori
output ratio); and examination aimed to find out the extent to which operations are carried out in an
economical and efficient manner.

➢ Effectiveness audit
Effectiveness audit is an appraisal of the performance of programmes, schemes, projects with
reference to the overall targeted objectives as well as efficiency of the means adopted for the
attainment of the objectives.

➢ Efficiency-cum performance audit, wherever used,
Is an objective examination of the financial and operational performance of an organization,
programme, authority or function and is oriented towards identifying opportunities for greater
economy, and effectiveness.
The procedure for conducting performance audit covers identification of topic, preliminary study,
planning and execution of audit, and reporting.
While the trend towards a comprehensive approach for conducting performance of full scope
audit is visible, the coverage and depth of evaluation vary according to the statutory limitations,
and the organizational constraints of C&AG.

QNO Audit of Receipts Old Course-- (N20E)
GA.23 Bhaskar CNO - GA.180
The audit of receipts of government is not as old as audit of expenditure but with the rapid growth of public
enterprises audit of receipts tax or non-tax has come to stay. Discuss audit of receipts with respect to
Government Audit.
➢ Audit of Receipts
The audit of receipts is neither all pervasive or as old as audit of expenditure but has come to stay in
some countries. Such an audit provides for checking.

➢ Principle 1
Focus
whether all revenues or other debts due to government have been correctly assessed, realised and
credit to government account by the designated authorities.
➢ Steps
Procedures
whether adequate regulations and procedures have been framed by the department/agency
concerned to secure an effective check on assessment, collection and proper allocation of cases.
Compliance with Procedures
whether such regulations and procedures are actually being carried out;
Irregularities
whether adequate checks are imposed to ensure the prompt detection and investigation of
irregularities, double refunds, fraudulent or forged refund vouchers or other loss of revenue
through fraud or wilful-omission or negligence to levy or collect taxes or to issue refunds; and
Suggestion regarding improvements
review of systems and procedures to see that the internal procedures adequately secure correct
and regular accounting of demands collection and refunds and pursuant of dues up to final
settlement and to suggest improvement.

➢ Principle 2
Overall is important as compared to Individual
The basic principle of audit of receipts is that it is more important to look at the general than on
the, though individual cases of assessment, demand, collection, refund, etc. are important within
the area of test check. A review of the judicial decisions taken by tax authorities is done to judge
the effectiveness of the assessment procedure.

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