Theme based Audit- Very important

Theme based audit 

v Introduced in the year 2006 @ CAG audit

v Usually Audit inspections have become routine in nature.  That means concentrate on the bills, vouchers submitted to the accounts office by the Executives.

v Regular audit inspections are not contributing any major system improvement.

v So to obviate the above limitations in the regular audit and as a system improvement,  Theme based Audit introduced at CAG audit inspections in the year 2006.

v In Railways Accounts administration too, Internal Audit Cells (formed around 1993 year) are advised to carry out the "THEME BASED AUDITS" for system improvement. 

v Procedure of "Theme based Audit" in Railway administration is as follows.

(Authority:  Railway Board letter No. 2015/AC-II/20/16 dated 20.10.2015. Click here for letter -                               )

1.     Identification of 2 subjects per year by FA&CAO in Zonal Railway/Production Unit.

2.     Holding entry level conference with concerned PHOD's in presence of General Manager.

3.     Nomination of Nodal officer in each dept. to facilitate system audit.

4.     Completion of Internal Audit Report.

5.     Holding Exit conference on the Draft Internal Audit Report by FA&CAO with PHOD concerned in the presence of General Manager.

6.     Finalization and submission of Final Internal Audit Report to PHOD concerned.

7.     Concerned PHOD will submit ACTION TAKEN REPORT thereon to General Manager through FA&CAO along with copy to Railway Board (within 90 days)

8.     Salient features of the Internal Audit Report will be shared with all the Zonal Railways for information and system improvement.

9.     Executive Director/Finance Commercial is the Coordinator at Railway Board for Theme based Audits.

South Central Railway - Theme based Audit subjects
2015-16	2016-17
1. Inventory mgmt. & accountal of HSD oil at RCDs	1. Track materials - Procurement, Accountal & Utilization
2.  Procurement, utilization & accountal of Sand by RCDs & Sheds	2. Freight loading - Unmet demand for Wagons & solutions

Note:

Candidates are advised to understand the above one carefully, as it is the latest topic in Audit side and expect short notes question in Appendix 3 (IREM) exams/LDCE.  5 marks question asked on this subject in LDCE -SWR 2016 Paper I.

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