Page 284 - CA Inter Audit PARAM

CA Ravi Taori
The auditor has to see that the expenditure incurred conforms to the relevant provisions of
the statutory enactment and is in accordance with the financial rules and regulations framed
by the competent authority.

Audit of Sanctions:
The auditor has to ensure that each item of expenditure is covered by a sanction, either
general or special, accorded by the competent authority, authorizing such expenditure.

Audit against Provision of Funds: Audit against provision of funds is aimed at ascertaining
whether the monies shown in the accounts as having been disbursed, were legally available
for and applicable to the service or purpose to which they have been applied or charged.

Propriety Audit:
It is required to be seen that the expenditure is incurred with due regard to broad and general
principles of financial propriety. The auditor aims to bring out cases of improper, avoidable,
or in fructuous expenditure even though the expenditure has been incurred in conformity with
the existing rules and regulations. Audit aims to secure a reasonably high standard of public
financial morality by looking into the wisdom, faithfulness and economy of transactions.

Performance Audit:
This involves that the various programmes, schemes and projects where large financial
expenditure has been incurred are being run economically and are yielding results expected
of them. Efficiency-cum performance audit, wherever used, is an objective examination of the
financial and operational performance of an organization, programme, authority or function
and is oriented towards identifying opportunities for greater economy, and effectiveness.

QNO Audit against Rules & Orders Old Course --
GA.10 Bhaskar CNO - GA.080 (P16M/N20R/N20E/N21M/M22M/N22M)
Audit against rules and orders aims to ensure that the expenditure conforms to the relevant provisions of
the Constitution and of the laws and rules made thereunder. The job of audit is to see that these rules,
regulations and orders are applied properly by the subordinate authorities. It is, however, not the function

of audit to prescribe what such rules, regulations and orders shall be. Analyse and Explain
OR
Write a short note on Audit against Rules and Orders.
Answer ➢ Aim
Audit against rules and orders aims to ensure that the expenditure conforms to the relevant
provisions of the Constitution and of the laws and rules made thereunder. It also seeks to satisfy that
the expenditure is in accordance with the financial rules, regulations and orders issued by a
competent authority.
➢ Breakup of Audit
These rules, regulations and orders against which regularity audit is conducted mainly fall under the
following categories:
• Which fund can be used?
Rules and orders regulating the powers to incur and sanction expenditure from the Consolidated Fund
of India or of a State (and the Contingency Fund of India or of a State);
(E.g., National Highway --- Consolidated Funds of India,
Roads sponsored by world bank loan--- Public Accounts Fund of India
State Highways--- Consolidated Funds of State)
• Procedure for withdrawing from funds.
Rules and orders dealing with the mode of presentation of claims against government, withdrawing
moneys from the Consolidated Fund, Contingency Fund and Public Accounts of the Government of
the India and of the States, and in general the financial rules prescribing the detailed procedure to be
followed by government servants in dealing with government transactions; and
(E.g., Procedure for withdrawing money from consolidated funds of India
• Money Bill—Passed only in Lok Sabha no need to pass in Rajya Sabha only sent for
any suggestions to be returned within 14 days, only for specified items

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