Audit of Contingency Fund and Public Accounts
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October 4, 2012 at 5:55 am #67949unknownParticipant
How is is audit of Contingency Fund conducted?
The principals, scope and exlent that govl. audit of expenditure from (Consolidated Fund apply equally to audit of expenditure met out of advance from Contingency Fund which is under the disposal of the President of India/ the Governor of the State. Government takes advances from the said fund for the purpose of meeting the unforeseen expenditure pending authorisation of the Parliament/the State Legislature. The same is replenished within the financial year subject to approval of Legislature. The audit will see as under:
(a) Audit of sanction.
(b) Audit of provision of Fund.
(c) Audit of expenditure made by observing the provisions of the Constitution and law made thereunder and financial rules and regulations framed by the Government.
(d) Audit of financial propriety.
(i) High standard of public financial morality.
(ii) Sound financial administration.
(iii) Devotion to financial interests of the Govt.October 4, 2012 at 6:02 am #74676unknownParticipantHow is audit of Public Accounts conducted ?
Or
“The general principles and rules of audit of expenditure apply mutatis mutandis in case of disbursement under Debt, Deposit and Suspense head”. —Discuss.
The audit examine the following matters.
(a) The procedures laid down in case of audit of expenditure apply mutatis mutandis (making necessary alterations) to disbursement under Debt. Deposit and Remittance and Suspense heads.
(b) In case of repayment, audit will check the original receipts and verify whether repayment was made after observing the rules and regulations framed by the Government.
(c) In case of payment subject to recovery, audit should ascertain that the moneys are regularly repaid by the debtor.
(d) Audit will review and verify the balances under the heads Debt. Deposit heads and the outstanding under Suspense and Remittance heads, at the close of the financial year.
(e) To ascertain where necessary whether the person or persons by whom balance is to whom it is due, admit its correctness and in case of balances due to the Govt. how far they are really recoverable.October 14, 2012 at 5:02 am #74785unknownParticipantHow is audit of Sinking Fund conducted?
The audit will examine the following matters:
(a) Sinking Fund is opened to which regular contributions are made out of Consolidated Fund for redemption of loan raised by the Government.
(b) Audit has to satisfy that credits to these funds are in accordance with the undertaking are in given by the Government and declare the prospect of the loans and that the payment are utilised for the purpose for which the fund had been credited.
(c) Arrangements for amortisation of loans for unproductive purposes may be related to some extent to the period of maturity of the loans.
(d) Arrangements for amortisation of loans for productive purposes must again depend on particular circumstances of each case.October 14, 2012 at 11:08 am #74792unknownParticipantHow is audit of Investment conducted?
The audit see to the following matters:
(a) Investments made on account of any regular constituted Sinking Fund or other Funds administered by the Government are of the category authorised by the statuary provisions.
(b) Audit will examine whether any unauthorised, irregular or unsound investments have been made by the Government.
(c) Any losses connected with investments or unusual depreciation in the market price of any investment should be brought to the notice of the Government.October 14, 2012 at 11:10 am #74793unknownParticipantHow is audit of Service and Provident Fund conducted?
The audit will examine the following matters:
(a) Audit will watch that the subscription and other dues recoverable under the rules of the Fund are recovered regularly from the Government employee.
(b) In case of Contributory Provident Fund audit will examine whether Government’s share of contribution has been properly calculated and credited to the account.
(c) The audit will verify the books of account of the Fund including the detailed accounts of the subscribers.October 23, 2012 at 1:32 pm #74935unknownParticipant(i) What are Reserves and Reserve Funds?
(ii) How is audit of Reserves and Reserve Funds conducted?
(i) The said fund is opened for a specified purpose. There are several Reserves and Reserve Funds in the Deposit Section of the accounts of the Government of India and the State Governments. The said fund is made out of public contribution or grants from revenue of the Government of India or the State Government or from outside agencies.
(ii) The audit will see to the following matters:
(a) Transactions classified and accounted for as per prescribed principles.
(b) Rules and Regulations framed by competent authority have been properly observed in this regard.
(c) Verify the balance at the close of the financial year.October 24, 2012 at 3:04 pm #74953unknownParticipant(a) What are deposits?
(b) How is audit of Deposit conducted?
(a) Moneys which are received by Treasury are properly credited to the Public Accounts. It is called ‘Deposit’, The same are classified as under:
(i) Revenue Deposit.
(ii) Civil Court Deposit.
(iii) Criminal Court Deposit.
(iv) Personal Deposit.
(b) Audit will examine her following matters:
(i) Repayment of deposit voucher should be verified with original receipt either into individual account or against total credit which does not exceed the total credit.
(ii) Balance of deposit accounts are correctly carried over the next year account.
(iii) Deposits unclaimed for more than three years are treated as Lapsed Deposit and the said amount is transferred to Revenue Receipt Account of the Government.October 24, 2012 at 3:39 pm #74954unknownParticipantHow is audit of Loans and Advances by Govt. conducted?
The audit will examine the following matters:
(a) Government disburses Loans and Advances to public, quasi-public bodies and individual for which there is a specified law in respect of sanction of Loans and Advances. When loan is sanctioned, the terms and conditions of repayment of loan and interest are to be mentioned therein.
(b) In case of remission of loans audit will examine the conditions.
(c) Whether repayment of Loans and Advances including interest are regularly made or not. The same should be watched.
(d) Irregular repayment of principal and interest.
(e) Financial position of the debtor.
(f) Accounts maintained by the A. G. Office.October 28, 2012 at 12:05 pm #75001unknownParticipant(a) What is Suspense Account?
(b) How is audit of Suspense Account conducted?
(a) Suspense Account
When proper classification of accounts is not available, the amount is kept under Suspense Accounts. The same is subsequently removed to the proper head of accounts by book adjustment or making payment of recovery in cash.
(b) The audit will examine the following matters:
(i) Unadjusted balances under the Suspense Account which may be bonafide assets or liabilities of the Government, may he realised or settled as the case may be.
(ii) Satisfactory action is taken by the concerned officer for realisation of the amount or settlement.
The balance of the Suspense Accounts should be reviewed in short intervals so that no items remain unadjusted for a longer period.November 3, 2012 at 1:51 pm #75118unknownParticipantHow is audit of Remittances conducted?
Audit of remittances may be made as under:
(a) Debits and Credits are cleared either by receipts or payments in cash or by book adjustment under the relevant service head of accounts.
(b) Debits and Credits have been separated by corresponding Debits and Credits within the same or another account circle.
(c) Verify the balance from month to month in order to effect their for early clearance. -
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