3 fold Object of Statutory Audit

 3 fold Object of Statutory Audit

Source: 116 F1 - Para Number 16 of Chapter One of Finance Code Volume One (Revised edition of 2022)

Broadly: 

 

Accountancy Audit - accuracy of arithmetical calculations and supported vouchers

Appropriation Audit - checking the correct Classification of expenditure or not 

Administrative Audit - Audit of Sanctions as per rules and regulations

In Detail: 

Accountancy Audit: 

• To check the accuracy of arithmetical calculations and to see that all payments are supported by receipted vouchers.

 

• Akin to the audit by company auditors whose objectives are detection of fraud, detection of technical errors and the detection of errors in principle. 

 

• It assesses the adequacy of the accounting system and the system of internal check in the organization. 

Appropriation Audit: 

• Check the classification of expenditure to ensure that expenditure and receipts have been charged to the proper heads of account

• Also, the voted appropriations under these heads have not been exceeded. 

• Part of Parliamentary control over Railway Finances. 

Administrative Audit: 

• Audit of sanctions to check that expenditure has been incurred according to prescribed rules and regulations

• If not, it has been sanctioned by a competent authority.