Page 291 - CA Inter Audit PARAM

CA Ravi Taori
To inspect any office of accounts under the control of the Union or a State Government
including office responsible for the creation of the initial or subsidiary accounts.

➢ In carrying out the audit, the C & AG has the power to dispense with any part of detailed audit of any
accounts or class of transactions and to apply such limited checks in relation to such accounts or
transactions as he may determine.

QNO Reporting Procedures of CAG Old Course-- (M21E)
GA.41 #Unique
The effectiveness of an audit depends on reporting results to the proper authority.

Explain the Statement with the role of C & AG.
Answer If proper authority is informed, proper action can be taken
The effectiveness of an audit depends on reporting results to the proper authority so that appropriate
action may be taken to rectify the irregularities or impropriety where possible or to prevent re-
occurrence.

Proper reporting is right as well as obligation
The right as also the obligation to report on the results of audit findings is inherent to the institution of
the Auditor General and is usually safeguarded in the Constitution and related enactments.

Article 151
Article 151 of the Indian Constitution enjoins that the C&AG shall report on the accounts of the Union
and of each of the States to the President or the Governor concern and the letter shall cause the report
to be laid before the legislatures.

Create awareness in parliament committees (PAC & COPU)
The reports should not only be presented to the legislatures but thereafter also publicised adequately
in order to create a proper climate of public opinion for taking remedial action where necessary, on the
findings of the Auditor General. This may also constitute a more effective safeguard in the future.

CAG presents facts & recommendation
In India, the reporting is factual, and the conclusions are left to be drawn by the reader. This is
presumably to ensure total objectivity. Nothing debars C&AG from making recommendations in the
audit report but traditionally this has been left to be done by the Public Accounts Committee. The overall
Indian position regarding reporting standards contained in instructions issued by the C&AG on the
subject. Experience and professional judgement ultimately determine what is to be included in the audit
reports. The auditor has to be a thorough professional and the audit reports have to be prepared with
great skill for both the presentation and contents should compel readership.

QNO Audit of local bodies-Types of Revenue Grants Old Course— (N20E/N21M)
GA.43 Bhaskar CNO - GA.300
List out the types of Revenue Grants received by local bodies from the State administration.
Different types of revenue grants which local bodies may receive Local bodies may receive different types
of grants from the state administration as well. Broadly, the revenue grants are of three categories:
➢ General purpose grants: These are primarily intended to substantially bridge the gap between the
needs and resources of the local bodies.
➢ Specific purpose grants: These grants which are tied to the provision of certain services or
performance of certain tasks.
➢ Statutory and compensatory grants: These grants, under various enactments, are given to local
bodies as compensation on account of loss of any revenue on taking over a tax by state government
from local government.

www.auditguru.in 9.17