Statutory Audit Chapter IX

A constitutional authority responsible for auditing the accounts of the Union, states, and Union Territories in India.

CAG's authority derives from Articles 149-151 of the Indian Constitution and relevant Acts like the Comptroller and Auditor General's (Duties, Powers and Conditions of Service) Act, 1971 and 1976 amendment act.

Auditing expenditure from Consolidated Fund of India, States, and Union Territories with Legislative Assemblies. Ensuring funds are legally available and expenditure follows correct procedures.

A fund that receives all government revenue and from which all government expenditures are made.

The CAG audits all transactions relating to Contingency Funds of Union and States.

The CAG audits all transactions of the Union and States relating to Public Accounts.

The CAG verifies if the government had legal authority to operate on the specific account/funds and if they were allocated for the correct purposes.

The Deputy Comptroller and Auditor-General of India (Railways) audits the accounts of the Indian Railways on behalf of the Comptroller and Auditor General.

A test check is applied to vouchers and related accounts records. Inspections on the spot of initial records and documents are also conducted to ensure accuracy.

The audit ensures the system of accounts used by the Railways is suitable, internal checks are sufficient, accounts are maintained accurately, and financial interests are protected.

The audit process ultimately benefits the Railway system, ensuring proper financial management and accountability.

The Railway Board issues instructions governing the compilation of Railway accounts and internal check procedures.

The Deputy CAG checks the adequacy and suitability of the instructions and internal check procedures issued by the Railway Board.

The Deputy CAG ensures the instructions are consistent with relevant statutory rules and facilitate effective auditing.

The Deputy CAG also reviews the Railway portion of the Finance Accounts of the Union Government, Annual Review of Balances, and Appropriation Accounts.

The Deputy CAG prepares the Audit Report (Union Government-Railways) of the Comptroller and Auditor-General of India.

The official responsible for auditing government spending on railways except those pertaining solely to individual railways or accounts offices.

The Deputy Comptroller audits financial approvals for railway projects, including those regarding financial rules and general orders.

The Deputy Comptroller audits tenders invited and accepted by the Railway Board for purchasing materials.

The official responsible for the detailed audit of accounts and records of a specific railway.

This official audits all expenditure and receipts of a railway, including construction, operations, stores, and manufacturing.

This official audits sanctions, estimates, general orders, local traffic, and sanctions related to inter-railway traffic.

The expenses of the Railway audit are covered by railway revenues and are debited to specific budget heads.

The cost of the Railway audit wing is treated as charged expenditure, a specific type of government expense.

This article of the Indian Constitution defines the rules for 'charged expenditure', including the cost of the Railway audit.

The Principal Director of Audit uses special letters, notes of objection, and factual statements to inform Railway Administrations about important findings during audit inspections.

Railway Administrations are responsible for promptly reviewing and responding to audit findings, providing a clear explanation of their position to the Principal Director of Audit.

Detailed replies to draft audit paragraphs ensure the Principal Director of Audit has a complete picture of the Railway's position before finalizing the audit report.

The General Manager, Financial Adviser and Chief Accounts Officer, Head of the Department concerned, Deputy Comptroller and Auditor-General, and the Director (Accounts) of Railway Board are all involved in reviewing and potentially approving the draft paragraphs.

A detailed history of the case, relevant correspondence not covered in the audit letter, and a clear explanation of the Railway's position should all be included in the reply.

These notes detail specific audit findings and irregularities, requiring immediate action from the relevant departments.

This section includes general observations and recommendations, requiring departmental review but less immediate action.

The Accounts Officer is responsible for handling both parts of the audit notes, ensuring timely action and recordkeeping.

Executive offices are tasked with responding to inspection reports, providing details and explanations to the Accounts Officer.

The Accounts Officer reviews replies, gathers additional information, and consults with relevant departments before forwarding them to the Principal Director of Audit.

The Accounts Officer collaborates closely with administrative authorities to ensure replies accurately represent the Railway Administration's position.

If the Accounts Officer disagrees with the Principal Director of Audit, the matter is escalated to the General Manager for resolution.

The General Manager can resolve the disagreement or, if necessary, forward the issue to the Railway Board for further action.

Departments must maintain records of all received audit notes and inspection reports, tracking their status and ensuring timely action.

Records related to objections should not be destroyed until the objections are resolved.

The Deputy Comptroller and Auditor-General of India (Railways) audits the accounts of the Indian Railways on behalf of the Comptroller and Auditor General.

The Comptroller and Auditor General of India audits all expenditure from the Consolidated Fund of India, all States and Union Territories, and all transactions relating to Contingency Funds and Public Accounts.

Railway audits ensure the system of accounts is suitable, internal checks are sufficient, accounts are accurate, and financial interests are protected.

The Deputy CAG reviews the instructions issued by the Railway Board, ensuring they align with statutory rules and support effective auditing.

The Principal Director of Audit uses special letters, notes of objection, and factual statements to inform Railway Administrations about audit findings.

Railway Administrations are responsible for reviewing audit findings, providing clear explanations to the Principal Director of Audit.

Disagreements are escalated to the General Manager or Railway Board for resolution.

The Comptroller and Auditor General (CAG) is responsible for ensuring that the accounts of the Union and State Governments are kept in a prescribed format, as per Article 150 of the Constitution.

The CAG verifies and certifies the 'net proceeds' of taxes collected by the central government, ensuring that the correct amount is allocated to the States based on constitutional provisions.

The CAG's independence is safeguarded by the Constitution, which allows for their appointment by the President and removal only on the same grounds as Supreme Court judges.

The CAG has the authority to decide the extent and scope of the audit based on their discretion.

Since 1929, the CAG doesn't compile Railway accounts but performs statutory audit, ensuring financial transparency and accountability.

The Deputy Comptroller and Auditor General (Railways) audits the spending on railways, except for individual railway accounts or offices.

This officer is responsible for detailed audits of specific railways, ensuring accuracy and compliance with regulations.

The Principal Director of Audit uses various tools like letters, notes of objection, and factual statements to inform railway administrations about audit findings.

Railway administrations should promptly respond to audit findings with explanations and remedial actions.

The Deputy Comptroller and Auditor-General of India (Railways), acting on behalf of the Comptroller and Auditor General, audits the accounts of the Indian Railways.

To ensure the accounting system is suitable, internal checks are sufficient, accounts are maintained accurately, and financial interests of the Railways are protected.

A test check is applied to vouchers and related accounts records. Inspections on the spot of initial records and documents are also conducted to ensure accuracy.

The Deputy CAG scrutinizes the adequacy and suitability of all instructions governing compilation of Railway accounts and the internal check procedures.

The Deputy CAG also reviews the Railway portion of the Union Government's Finance Accounts, Annual Review of Balances, and Appropriation Accounts.

The Principal Director of Audit, stationed at the headquarters of Zonal Railways/Production Units, assists the Deputy CAG.

The Principal Director uses special letters, notes of objection, and factual statements to inform Railway Administrations about important findings during audit inspections.

Railway Administrations are responsible for reviewing audit findings and providing a clear explanation of their position to the Principal Director of Audit.

Departments must maintain records of all received audit notes and inspection reports, tracking their status and ensuring timely action. Records related to objections should not be destroyed until the objections are resolved.

The Principal Director of Audit communicates important audit findings to the Railway Administrations.

The Principal Director of Audit uses special letters, notes of objection, or factual statements to communicate audit findings.

Railway Administrations must promptly review audit findings and provide detailed replies to the Principal Director of Audit.

Detailed replies help the Principal Director of Audit understand the Railway's position before finalizing the audit report.

The General Manager, Financial Adviser, Chief Accounts Officer, Deputy Comptroller and Auditor-General, and the Director (Accounts) review and approve draft audit paragraphs.

Payments related to Railway audit offices are made by the Railway Accounts Officer of the respective Railway. They act as both treasury officers and accounting officers for the Railway Audit Department.

The results of statutory audits are communicated through specific reports, audit notes, and inspection reports.

Audit objections are addressed promptly by the Accounts Officer. They can be handled internally or require input from the executive.

Inspection reports have two parts: Part I covers important matters, and Part II focuses on minor routine matters.

The Accounts Officer is responsible for handling audit objections, including eliciting information and ensuring appropriate actions are taken.