Statutory Audit Chapter IX

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Questions and Answers

What authority is created by the Constitution of India for conducting audits?

Director of Railway Audit

Financial Disclosure Authority

Comptroller and Auditor-General of India (correct)

Union Audit Board

Which Articles of the Constitution primarily derive the functions of the Comptroller and Auditor-General of India?

Articles 160 to 165

Articles 120 to 125

Articles 140 to 145

Articles 149 to 151 (correct)

What is one of the main duties of the Comptroller and Auditor-General of India according to the Duties, Powers and Conditions of Service Act?

To manage financial resources of each State

To prepare the annual budget for the Union and States

To monitor tax collections from citizens

To audit expenditure from the Consolidated Fund of India (correct)

Which established body oversees the audit of Contingency Funds and Public Accounts?

Comptroller and Auditor-General of India Signup and view all the answers

What year did the Comptroller and Auditor General's Act come into force?

1971 Signup and view all the answers

What does the term 'sui generis' in relation to the Comptroller and Auditor-General refer to?

Unique or one of a kind Signup and view all the answers

Which of the following dates marks the amendment to the Duties, Powers and Conditions of Service Act?

1st March, 1976 Signup and view all the answers

What is the role of the Principal Director of Audit regarding important cases during inspections?

To notify Railway Administrations through special letters and factual statements Signup and view all the answers

What should the Railway Administrations do upon receiving notifications from the Principal Director of Audit?

Scrutinize the facts and reply within the prescribed time Signup and view all the answers

Who receives advance copies of the draft paragraphs sent by the Principal Director of Audit?

Heads of Departments, Financial Advisers, and other key officials Signup and view all the answers

What is required of the General Manager when replying to draft paragraphs that involve multiple Railways or Units?

To provide a reply within eight weeks, approved by the Ministry of Railways Signup and view all the answers

What additional information should the General Manager include when replying to a draft paragraph?

A history of the case with relevant correspondence not covered in the audit's letter Signup and view all the answers

What type of financial sanctions does the Deputy Comptroller and Auditor-General (Railways) audit?

Sanctions having financial effect accorded by the Government of India Signup and view all the answers

Which of the following is NOT the responsibility of the Principal Director of Audit of a Railway?

Approving tenders for materials procurement Signup and view all the answers

The cost of Railway audit is categorized as what type of expenditure?

Charged expenditure Signup and view all the answers

Which documents are included in the Principal Director's audit responsibilities?

Estimates sanctioned by Railway authorities Signup and view all the answers

What aspect of financial oversight does the Deputy Comptroller specifically focus on?

Tenders accepted by the Railway Board Signup and view all the answers

What is INCLUDED in the audit conducted by the Principal Director of Audit of a Railway?

Audit of stores, stock, and manufacture Signup and view all the answers

Under which article of the Constitution is the cost of Railway audit treated as charged expenditure?

Article 112 (3) Signup and view all the answers

Which financial activities are not overseen by the Deputy Comptroller and Auditor-General (Railways)?

Financial sanctions related to an individual railway Signup and view all the answers

What type of financial actions does the Principal Director of Audit cover?

Financial receipts of railway organizations Signup and view all the answers

Who is primarily responsible for the final disposal of Part II of the audit notes?

The Accounts Officer Signup and view all the answers

What is the time frame for sending replies to Part I of inspection reports?

As soon as possible Signup and view all the answers

Who should the Accounts Officer collaborate with while responding to the Principal Director of Audit?

Administrative authorities concerned Signup and view all the answers

What should happen to the connected records with raised objections?

They should not be destroyed until objections are settled Signup and view all the answers

If the Accounts Officer disagrees with the Principal Director of Audit, what should they do?

Refer to the General Manager Signup and view all the answers

What type of reports should be kept and reviewed periodically?

Specific reports, audit notes, and inspection reports Signup and view all the answers

What is required from the Accounts Officer when making a reference to the General Manager?

A verbatim copy of the Principal Director's objection Signup and view all the answers

Who should be kept informed about the audit notes and their disposal?

The Principal Director of Audit Signup and view all the answers

What should the Accounts Officer do before replying to the Principal Director of Audit?

Consult the head of the division or department Signup and view all the answers

What is one of the main responsibilities of the Deputy Comptroller and Auditor-General of India (Railways)?

Scrutinising the adequacy of accounting instructions Signup and view all the answers

What should be included in replies to more important irregularities?

Clear indication of actions taken Signup and view all the answers

Which entity conducts the audit of Railway accounts on behalf of the Comptroller and Auditor General?

Deputy Comptroller and Auditor-General of India (Railways) Signup and view all the answers

What is a key objective of the statutory audit for the Railways?

To ensure the accuracy and maintenance of accounts Signup and view all the answers

How does the Deputy Comptroller and Auditor-General ensure compliance with statutory rules?

By examining codes and internal check procedures Signup and view all the answers

What facilitates the effectiveness of the statutory audit in the Railway Accounts Department?

Test checks of vouchers and records Signup and view all the answers

Which accounts are the Deputy Comptroller and Auditor-General responsible for during the audit?

Railway portion of Finance Accounts of the Union Government Signup and view all the answers

What must Railway officers provide to statutory audit officers?

Facilities to facilitate audit duties Signup and view all the answers

What does the Deputy Comptroller and Auditor-General examine regarding Appropriation Accounts?

Their accuracy for certification Signup and view all the answers

What is one method used to ensure effective auditing within the Railway Accounts Department?

Spot inspections of initial records Signup and view all the answers

What is the primary purpose of the audit conducted by the Comptroller and Auditor-General of India?

To ensure legal compliance of disbursements from the Consolidated Fund Signup and view all the answers

Which of the following best describes the authority of the Comptroller and Auditor-General of India with respect to audits?

It operates independently from government influence during audits. Signup and view all the answers

Which Act defines the duties and powers of the Comptroller and Auditor-General of India?

The Comptroller and Auditor General's Duties, Powers and Conditions of Service Act-1971 Signup and view all the answers

What is NOT a duty of the Comptroller and Auditor-General of India according to the outlined responsibilities?

To sanction budgetary allocations Signup and view all the answers

When did the amendment to the Comptroller and Auditor General’s Act come into force?

March 1, 1976 Signup and view all the answers

What do the Articles 149 to 151 of the Constitution primarily govern?

The framework for conducting audits Signup and view all the answers

What role does the Comptroller and Auditor-General of India play in the audit of expenditure?

Ensures that expenditures conform to legal authority. Signup and view all the answers

What is the primary role of the Principal Director of Audit in relation to important cases identified during inspections?

To bring relevant cases to the notice of Railway Administrations for review. Signup and view all the answers

When responding to the draft paragraphs sent by the Principal Director of Audit, who should the General Manager simultaneously inform?

The Deputy Comptroller and Auditor-General of India (Railways) and the Director, Accounts (Railway Board). Signup and view all the answers

What additional information must the General Manager provide to the Railway Board along with the proposed reply to the draft paragraph?

A history of the case and any relevant correspondence not covered by the audit. Signup and view all the answers

How should Railway Administrations formulate their responses to objections raised by the Principal Director of Audit?

With a high-level overview that convincingly presents the Railway's case. Signup and view all the answers

What is the time frame set for the General Manager to respond to the draft paragraph involving multiple Railways or Units?

Eight weeks, along with the necessary endorsements. Signup and view all the answers

Who primarily handles the payments of all charges related to Railway audit offices?

Railway Accounts Officers Signup and view all the answers

What do the audit notes typically detail?

Minor irregularities discovered during audits Signup and view all the answers

Which part of the inspection report addresses more significant issues?

Part I Signup and view all the answers

What should the Accounts Officer do regarding audit objections that can be resolved without executive reference?

Directly advise disallowances Signup and view all the answers

When preparing replies to significant audit findings, what must be included?

Actions taken to address the irregularities Signup and view all the answers

Which statement accurately describes the obligation of the Accounts Officer toward audit objections?

Actions should be taken on all defects identified Signup and view all the answers

What does the record of petty objections managed by the Principal Director of Audit provide?

Periodic updates for executive review Signup and view all the answers

What typically happens if the Accounts Officer disagrees with the Principal Director of Audit?

Suitable action should be ensured regardless of disagreement Signup and view all the answers

What comprises the inspection reports sent to the Financial Adviser and Chief Accounts Officer?

Part I addressing significant matters and Part II for minor matters Signup and view all the answers

What is the primary role of Railway Accounts Officers concerning the expenditure of the Railway Audit Department?

Acting as treasury and accounting officers Signup and view all the answers

What is the requirement for the Comptroller and Auditor General of India regarding their eligibility for other government positions?

They are ineligible for any other office under the Government of India or State Governments Signup and view all the answers

What determines the scope and extent of the audit conducted by the Comptroller and Auditor General of India?

The discretion of the Comptroller and Auditor General Signup and view all the answers

Under which article must the Union and State Governments keep their accounts in prescribed forms?

Article 150 Signup and view all the answers

What is the relationship between the responsibilities for the Railway accounts and the statutory audit performed by the Comptroller and Auditor General?

The Comptroller and Auditor General conducts statutory audits similar to other government departments Signup and view all the answers

Which provision ensures the independence and safeguards of the Comptroller and Auditor General's position?

They are appointed by the President and removed in a manner akin to a Supreme Court Judge Signup and view all the answers

What is the main purpose of the certification of 'net proceeds' by the Comptroller and Auditor General of India?

To ascertain and certify tax and duty collections assigned to states Signup and view all the answers

What significant change occurred as a result of the Acworth Committee's recommendations in relation to Railway accounts?

The responsibilities for compiling accounts were separated from audit functions Signup and view all the answers

What document outlines the administrative expenses of the Comptroller and Auditor General's office?

The Consolidated Fund of India Signup and view all the answers

What overarching principle must the Comptroller and Auditor General uphold, as stated in their oath of office?

To uphold the Constitution and the laws without bias Signup and view all the answers

What is the primary responsibility of the Deputy Comptroller and Auditor-General of India (Railways)?

Conducting audits under the direction of the Comptroller and Auditor General Signup and view all the answers

Which aspect does the Deputy Comptroller and Auditor-General scrutinize to ensure compliance?

The adequacy of instructions governing account compilation and internal check procedures Signup and view all the answers

What is a key method used by the statutory audit to maintain accuracy in the Railway Accounts Department?

Test checks on vouchers and connected account records Signup and view all the answers

Which of the following is NOT a responsibility of the Deputy Comptroller and Auditor-General of India (Railways)?

Conducting audits of the Accounts Department directly Signup and view all the answers

What must Railway officers provide to facilitate statutory audits?

All necessary facilities and information Signup and view all the answers

What does the Deputy Comptroller inspect as part of the auditing process?

Initial records and documents where transactions originate Signup and view all the answers

In what format must the Deputy Comptroller and Auditor-General assess the financial statements compiled by the Railway Board?

Specified statutory rules and guidelines Signup and view all the answers

Which document is reviewed during the audit process to evaluate the financial activities of the Railways?

Appropriation Accounts prepared by the Railway Board Signup and view all the answers

What is an important objective of the statutory audit process conducted for the Railways?

To ensure the accounting system is suitable and checks are sufficient Signup and view all the answers

What type of examination does the Deputy Comptroller and Auditor-General conduct on the Finance Accounts of the Union Government?

Focus on compliance with accounting standards Signup and view all the answers

Study Notes

CHAPTER-IX Statutory Audit

Comptroller and Auditor-General of India (901-908)
- Conducts audit of Union, State, and Union Territory accounts.
- Duties outlined in Articles 149-151 of the Constitution and the Comptroller and Auditor General's (Duties, Powers and Conditions of Service) Act 1971 and 1976.
Railway Accounts Separation from Audit (909-915)
- Comptroller and Auditor General responsibility for railway accounts transferred to Deputy Comptroller and Auditor-General of India (Railways).
Communications from Audit (916)
- Specific reports on significant irregularities, audit notes on minor issues, and inspection reports.
Disposal of Audit Objections (917)
- Accounts Officer handles objections to payments.
- Matters requiring executive action referred to the executive.
Audit Notes and Inspection Reports (918)
- Records of significant issues and ongoing issues are maintained.
- Records are reviewed to ensure prompt disposal.
Replies to Inspection Reports (919)
- Accounts Officer consults appropriate department heads before responding.
Disagreement between Accounts Officer and Principal Director of Audit (920)
- Conflicts referred to General Manager for resolution.
- Matters beyond General Manager competence referred to Railway Board.

Audit Objections and Provisional Payments (921-923)

Provisional payment for recurring payments allowed if based on a statutory rule, not a violation; payable.
Mistakes in accounts with audit scrutiny:
- If closed accounts, error rectified in current month accounts.
- If after March accounts correction is made before preparation of "Capital & Revenue Accounts" and "Finance Accounts".
- Other mistakes handled as per rules.
Audit Report-Railways (923-928)
- Responsibility of Deputy Comptroller and Auditor-General of India, Union Government (Railways), including commentary on Railway Board appropriation accounts.
Internal Audit (929-932)
- Focus traditionally on compliance with rules, regulations, policies and procedures.
- Focus expanded to include controls and risks related to business activities.
- Internal audit Process involves planning, preparation, performance, reporting and followup phases.
- Audit involves establishing scope and objectives, understanding operations, identifying and assessing risks, evaluating control procedures and reporting findings and follow up actions.
Other key details
Railway Accounts separation (909-915)
- Separation of accounting and auditing functions on Railways completed in 1929.
- Auditor-General relieved of compiling railway accounts. The review procedures remain the same.
Director of Railway Audit (910)
- Deputy Comptroller and Auditor-General of India is responsible for Railway account audit under CA&AG.
- Assisted by Principal Directors of Audit at zonal headquarters/production units.

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Description

This quiz covers the essential aspects of Statutory Audit as outlined in Chapter IX. It includes the roles and responsibilities of the Comptroller and Auditor-General of India, the separation of railway accounts, disposal of audit objections, and the importance of audit notes and inspection reports. Test your knowledge on the structure and functioning of statutory audits within India.