Audit of Government Entity

What is the definition of Government Audit?

An objective, systematic, professional, and independent examination of financial, administrative, and other operations of a public entity for evaluation and verification.

What are the objectives of government auditing?

1. Accounting for Public Funds 2. Appraisal of Government Policies 3. Corrective Actions 4. Administrative Accountability.

What does the audit of government expenditure assess?

It assesses whether expenditures conform to statutory enactments, sanctions, provision of funds, and financial propriety.

What is Propriety Audit?

It's an audit focused on ensuring expenditure aligns with general principles of financial propriety, even if it conforms to existing rules.

What are the main components of Performance Audit?

1. Efficiency audit 2. Economy audit 3. Effectiveness audit.

What is the purpose of auditing government receipts?

To ensure all revenues due to government are correctly assessed, realized, and credited to the government account.

What is the role of the C&AG regarding the appointment?

The C&AG is appointed by the President of India and can only be removed from office under specific grounds.

What powers does the C&AG have according to the C&AG Act?

To inspect any accounts under control of the Union or State Government and require relevant documents for audit.

What duties does the C&AG perform regarding accounts?

Compile accounts of Union and States, audit all expenditure from Consolidated Fund, and audit receipts payable to the Consolidated Fund.

What is a significant definition of a body or authority substantially financed?

When a grant or loan from the Consolidated Fund exceeds ₹25 lakhs and constitutes at least 75% of its total expenditure.

What does the C&AG's supplementary audit process involve?

It includes a review of the financial statement within 60 days of receiving the audit report and involves conducting supplementary audits.

What is the significance of Section 19A in relation to the CAG's duties?

It applies to the reports of test audits conducted by the CAG.

What is the concept of Accountability in government auditing?

Accountability in government auditing refers to holding government officials responsible for the proper and efficient use of public resources.

What are the types of government audits?

Types of government audits include Compliance Audits, Financial Audits, and Performance Audits.

What is a Compliance Audit?

A Compliance Audit assesses whether an entity adheres to laws, regulations, and other requirements.

What is Financial Audit focused on?

A Financial Audit focuses on the accuracy and fairness of financial statements and accompanying disclosures.

What is the purpose of a Performance Audit?

The purpose of a Performance Audit is to evaluate the economy, efficiency, and effectiveness of government operations.

What does 'Audit Trails' refer to?

Audit Trails are detailed records that track the sequence of activities relating to any financial transaction.

What is the importance of Internal Controls in government audits?

Internal Controls are essential in government audits to prevent fraud and ensure accuracy in financial reporting.

What are Audit Recommendations?

Audit Recommendations are suggestions provided post-audit aimed at improving processes or addressing deficiencies.

What is the difference between Organizational Audit and Operational Audit?

An Organizational Audit evaluates the structure and governance of an entity, while an Operational Audit assesses efficiency and effectiveness in operational processes.

What is the role of Audit Committees?

Audit Committees are tasked with overseeing the financial reporting process, internal controls, and compliance with laws and regulations.