CHAPTER 33
RESULTS OF
AUDIT AND AUDIT REPORTS
33.1 The audit by the Indian Audit and Accounts Department is
conducted generally after the events have occurred. In some cases, certain
classes of payments are made after the claims have been audited and passed by
Audit; but these payments, taken together, comprise a negligible fraction of
the whole expenditure of Government. Generally speaking, therefore, the
proceedings of the Indian Audit and Accounts Department are conducted
ex-post-facto and consequently, audit cannot prevent an overpayment through
negligence or non-observance of the financial rules and regulations or the
commission of any other irregularity or impropriety by the administrative
authorities during the course of transacting business of Government.
33.2 The detailed results of audit are reported
by the Audit Officers to the disbursing and controlling authorities, who are
responsible for the early settlement of the objections raised in audit by
necessary compliance and/or recovery or regularization of excess or irregular
payments, if any. Audit Officers are, however, required to keep a constant and
careful watch over the objections raised by them and to keep controlling
authorities and also the Government where necessary, fully acquainted not only
with individual cases of serious disregard of financial rules but also with the
progress and clearance of objections. Audit depends for its effective value on
its right and duty to report results to the proper authority so that
appropriate action may be taken to rectify the irregularity or impropriety,
where possible or to prevent a recurrence of it. This authority may be
departmental authority, the Government itself or as the last resort, the
Legislature.
🆀Audit depends for its effective value on its right and duty to . · report results to the proper authority for taking appropriate action. The proper authority for this is :
(A) Heads of Departments
(B) Departmental authority, the Government or as the last report, the Legislature
(C) Vigilance Department.
(D) Chief Secretary
Correct Answer:- Option-(B)
Authority
33.3 Articles 149 and 151 of the Constitution of
India and Sec. 49 of the Government of Union Territories Act, 1963 read with
the CAG’s (DPC) Act, 1971 empowers the Comptroller and Auditor General of India
to audit the accounts of the Union/State/Union Territory having a Legislative
Assembly and submit his reports to the President/ Governor/ Administrator, as
the case may be, who causes them to be laid before the respective legislature.
The Audit Reports relating to the transactions of State Governments and the
Union Territories are, prepared by the respective State Accountants General
/Directors of Audit under the directions of the Comptroller and Auditor
General. The Audit Reports relating to the transactions of the Union are
prepared in six volumes viz, Civil (Relating to expenditure incurred by Civil
Ministries and Departments) Civil Revenue Receipts (dealing with revenue
receipts of the Union), Commercial (dealing with the results of audit of
Government companies and corporations subject to audit by the Comptroller and
Auditor General), Posts & Telegraphs, Defence Services and Railways.
🆀The powers, duties and functions of the comptroller and Auditor General in relation to Audit and Accounts are derived from
(A) The Constitution of India
(B) Audit and Accounts order 1936
(C) Chartered Accounts Act
(D) C and A.G.(DPC) Act 1971
Correct Answer:- Option-(D)
Audit
Reports
33.4 The Audit Reports contain such comments on
the regularity, propriety and effectiveness of expenditure as are deemed
necessary and proper as a result of audit investigation. Thus the Audit Reports
draw attention to:
(a) matters arising from Appropriation Accounts,
the more important being;
(i) cases of excess over grants/appropriations
requiring regularization;
(ii) cases where expenditure has been incurred
on a ‘New Service’ ‘New Instrument of Service’ without specific authority of
the Legislature;
(iii) points relating to efficiency of budgeting
and control over expenditure;
b) points of interest arising from Finance
Accounts;
(c) points arising from the audit of expenditure
(including expenditure on commercial and trading activities carried on by
Government departments) and of accounts of stores and stock; the Report
indicates important cases of non-observance of rules and standards of financial
propriety;
(d) points arising from a review from the
financial aspect of the achievements of selected projects and schemes
undertaken by Government;
(e) important cases of losses, writes-off and of
wasteful or nugatory expenditure;
(f) points arising from the audit of other
financial transactions of Government, such as receipts, debt, deposit and remittance
transactions;
(g) matters relating to Government companies,
statutory corporations and other autonomous bodies, the accounts of which are
audited by Indian Audit & Accounts Department;
(h) any other matter of interest from the
financial or accounting point of view which the Comptroller and Auditor General
considers necessary to bring to the notice of the Legislature.
Audit
Report on Revenue Receipts
33.5 The Audit Report on Revenue Receipts
presents to the Legislature the revenue position of the Government of India
under Tax and Not-Tax sources. Besides, it also bring to their notice the
results of test audit in general and contains important irregularities
discovered in the course of audit of receipts.
Separate
Audit Reports
33.6 Separate Audit Reports are prepared on the
accounts of Government corporations and other autonomous bodies audited by the
Comptroller and Auditor General, where the certification of the accounts is
necessary. These separate Audit Reports include mainly comments relating to the
correctness of the accounts and the conclusions which can be drawn from them.
🆀What are the Audit Reports prepared on the accounts of Government corporations and other autonomous bodies audited by the Comptroller and Auditor General, where the certification of the accounts is necessary?
(B)Separate Audit Reports
(C)Commercial Audit Reports
(D)None of these Correct Answer:- Option-(B)
🆀Where the certification of the accounts is necessary, the Reports prepared by the C&AG on the accounts of Government corporations and autonomous bodies are ?
(A) Commercial Audit Reports
(B) Special Audit Reports
(C) Separate Audit Reports
(D) None of the above
Correct Answer:- Option-(C)
33.7 To the Government concerned, the Reports
will show the extent to which (its subordinates are complying with) its rules
and orders have been complied with and will often suggest the directions in
which those rules and orders can with advantage be amplified or modified. To
the Legislature, the Reports will show how far the Government have complied
with its expressed policy in matters of importance and in particular how far
the moneys placed at the disposal of Government were regularly and prudently
spent and how far the tax and non-tax administration has been effective.
🆀What is the main purpose served by the Audit Reports being presented to the Legislature?
(A) How far the Government have complied with its expressed policy in matters of importance
(B) How far the moneys placed at the disposal were regularly and prudently spent
(C) How far the tax and non-tax administration has been effective
(D) All of the above
Correct Answer:- Option-(D)
33.8 The Audit Reports are signed by the
Principal Audit Officers and countersigned by the Comptroller and Auditor
General of India. These are submitted to the President/Governor/ Administrator
for being laid before the respective Legislature.
🆀The State Audit Reports are countersigned by whom?
(A)The Accountant General of the State
(B)Finance Minister of the State
(C)Governor of the State
(D)Comptroller and Auditor General
Correct Answer:- Option-(D)
(A)The Governor of the State
(B)The speaker of the State Legislature
(C)The chairman, Public Accounts Committee
(D)The Finance Minister of the State
Correct Answer:- Option-(A)
(A) Signed by Accountant General and submitted to C. & AG for being laid before Parliament (B) Signed by C& AG and submitted to the President for being laid before the Legislature.
(C) Signed by the Principal Audit Officer and countersigned by C& AG, submitted to Governor for being laid before the Legislature
(D) Signed by C & AG and submitted to Governor for being laid before Legislature
Correct Answer:- Option-(C)
33.9 The procedure which Parliament/Legislatures
follow in dealing with these Reports is regulated by rules framed or adopted by
Parliament/Legislature under Art.118/208 of the Constitution in respect of the
Union and the State respectively and Section 33 of the Government of Union
Territories Act, 1963. These rules provide for examination of the Accounts and
Reports by a Committee of the respective Legislature known as the Public
Accounts Committee or the Committee on Public Undertakings.
🆀The Audit Reports laid on the table of the Legislature are examined by which Committee ?
(A) Estimates Committee
(B) Public Undertakings
(C) Public Accounts Committee(D) (B) & (C) above
Correct Answer:- Option-(D)
🆀The Audit Reports laid on the table of the Legislature are examined by which committee? (A)Estimate Committee
(B)Finance Committee
(C)Public Accounts Committee
(D)Expenditure Committee
Correct Answer:- Option-(C)
