Structure | Role / Function| Audit
The internal audit organization was set up in Union Territory of Delhi
w.e.f. 1st July, 1977. It continued to work as one of the branches of
Principal Accounts Organisation till 31st May, 1981. It assumed independent
entity w.e.f. 1st June,
1981 as the Directorate of Audit. The Directorate
of Audit is headed by Principal Secretary (Finance) and is assisted
by Addl. Secretary Finance and Dy. Controller of Accounts (Audit).
Standards of financial propriety - Every officer incurring
or authorizing expenditure from public moneys should be guided by
high standards of financial propriety. Every officer should also
enforce financial order and strict economy at every step and see
that all relevant financial rules and regulations are observed, by
his own office and by Subordinate Disbursing Officers. Among the
principles on which emphasis is generally laid are the following:-
Every officer is expected to exercise the same vigilance in
respect of expenditure incurred from public moneys as a person of
ordinary prudence would exercise in respect of expenditure of his
The expenditure should not be prima facie more than the
No authority should exercise its powers of sanctioning
expenditure to pass an order which will be directly or indirectly
to its own advantage.
Expenditure from public moneys should not be incurred for the
benefit of a particular person or a section of the people,
a claim for the amount could be enforced in a Court of Law,
the expenditure is in pursuance of a recognized policy or
The amount of allowances granted to meet expenditure of a
particular type should be so regulated that the allowances are not
on the whole a source of profit to the recipients.
The responsibility and accountability of every authority
delegated with financial powers to procure any item or service on
Government account is total and indivisible. Government expects
that the authority concerned will have the public interest
uppermost in its mind while making a procurement decision. This
responsibility is not discharged merely by the selection of the
cheapest offer but must conform to the following yardsticks of
Whether the offers have been invited in accordance with
governing rules and after following a fair and reasonable
procedure in the prevailing circumstances.
Whether the authority is satisfied that the selected offer
will adequately meet the requirement for which it is being
Whether the price on offer is reasonable and consistent
with the quality required.
Above all, whether the offer being accepted is the most
appropriate one taking all relevant factors into account and in
keeping with the standards of financial
Whenever called for, the concerned authority must place on
record in precise terms, the considerations which weighed with it
while taking the procurement decision.
The Directorate of Audit consists of the following two wings :-
Examiner Local Fund Accounts
The total sanctioned strength of above three units is as under :-
||Name of the post
||Dy. Secretary Finance (A/Cs.)
||Dy. Director (Audit )
||Sr. Accounts Officer/ Accounts Officer
ROLE / FUNCTION
The main function of Directorate of Audit, which is divided into
two units namely Internal Audit and Local Fund Accounts, is
to check the initial accounts of various government departments,
institutions receiving grants - in-aid from the government,
companies under liquidation, gram panchayats and autonomous
organizations under the Government of National Capital Territory of
The Directorate of Audit is also responsible for conducting
special audits as and when requested by the concerned departments and
directed by the higher authorities.
Internal Audit test check the accuracy and completeness of the
accounts and ensures that all revenue receipts collected
are brought to account under proper head, that all the expenditures
and disbursements are duly authorized, vouched and correctly
classified and that the final accounts represent a complete and true
statement of financial transaction it purports to exhibit.
Chapter 12 of Civil Accounts Manual issued by Govt.
of India, Ministry of Finance provides for setting up of an efficient
internal audit organization to ensure both accuracy in accounts and
efficiency in the operation of the accounts set up. The scope and function
of internal audit organization depends on the nature of work and
number of subordinate offices, the strength of establishment, nature and
quantum of expenditure, etc. The organization shall check the initial
accounts maintained in executive offices with a view to ascertain as to
how far they are following the rules in financial matters. The internal
audit should, inter alia ,cover checking of all accounts records including
those relating to fund accounts, loan and advances and records of physical
verification of stores, equipments, tools and plants, etc.
The duties of Internal Inspection Wing, inter-alia,
include the following:-
Study of the accounting procedures adopted by the Department with a
view to ensure that they are correct, adequate and free from any defects
Keeping watch over the implementation of the prescribed procedure and
the orders issued from time to time.
Periodical review of all account records.
Perusation/Settlement of objections taken in test audit notes issued
by Statutory Audit.
To examine and report on points or irregularities brought to its
Scrutiny of purchase and stores procedures in the offices inspected,
so as to ensure that they are free from any defects or lacunae.
Checking of procedures with regard to disposal of assets to ensure
that adequate procedure exists for scrapping/condemning and the same is
Scrutiny of General Office Management procedure adopted by the Head
of Office locally, where there have been financial and accounting
implications, so as to suggest tightening up of administrative and
financial control, savings in expenditure and streamlining of
FREQUENCY OF AUDIT
Chapter 12: 10:1 of Civil Accounts Manual provides that all out efforts should be made to
see that inspection of all the offices within the jurisdiction of an
internal audit organisation is done at least once a year.
AUDIT CALENDAR :