Audit

Audit

A systematic examination, evaluation, and verification of government property, expenditures, and accounts.

Primary Aims of Audit

Assist management, identify limitations, ensure asset utilization, and guarantee financial transparency.

Directorate of Audit Defence Services (DADS)

Conducts statutory audits of the Armed Forces under the Ministry of Defence.

Naval Local Audit Office (NLAO)

Responsible for local audits of public accounts and ledgers under the Senior Finance Controller (Navy).

Internal Audit

Audits carried out by internal officers at unit level to review non-public funds and essential documents.

External / Statutory / Test Audit

Audits organized by the CAG that evaluate public expenditures and raise formal observations.

Annual Audit

Evaluates the preceding year's operations concerning public funds and overall asset management.

Special Audit

Constituted upon directives of the CAG to scrutinize specific areas.

Drawing and Disbursing Officers (DDOs)

Must ensure compliance with regulations to prevent audit objections.

Do's in Audit Conduct

Cooperate with the audit team, present authentic records, and submit structured replies.

Don'ts in Audit Conduct

Avoid arguing, guessing, and providing unrequested files during an audit.

Local Test Audit Reports (LTAR)

Categorize observations into three phases based on the severity of financial irregularities.

Advance Para

Initial categorization for serious issues like theft or major irregularities that need prompt action.

Draft Para

Escalated observation submitted to the CAG if satisfactory replies are not provided within the stipulated time.

NHQ Audit Cell (DPP&A)

Monitors audit positions and ensures regulatory compliance.

Audit Register

Maintained yearly to record all audit reports, correspondence, and inspection entries.