Chartered Accountants · ICAI Firm Registration No. 111959W · Established 1991sksa123@yahoo.com · Telephone: 9892801235 / 9892801239
S B S K & AssociatesChartered Accountants

Public sector

Government and CAG Audit

Audit in the public sector answers to a different authority and asks a different question: not only whether the accounts are right, but whether the money was spent as sanctioned.

Government bodies and public sector entities, including audit work relating to the CAG.

The Comptroller and Auditor General derives audit powers from the Constitution and from the Comptroller and Auditor-General's (Duties, Powers and Conditions of Service) Act, 1971. For government companies, the Companies Act, 2013 provides for the CAG to appoint the statutory auditors and to conduct a supplementary audit of the accounts.

Government-related audits differ widely from one another. The scope, the reporting format and the authority to whom the report is made are set by the specific assignment and the instructions issued for it, and no two are assumed to be the same.

Accounting and reporting

  • Accounting frameworks applicable to government bodies and government companies
  • Grants and funds, their application and utilisation reporting
  • Reconciliation of receipts and payments with bank and treasury records
  • Fixed assets and stores held by public sector entities

Regulatory

  • Audit powers of the Comptroller and Auditor General under the Constitution and the CAG Act, 1971
  • Appointment of auditors and supplementary audit of government companies under the Companies Act, 2013
  • The instructions and reporting formats issued for the particular assignment

Internal controls

  • Compliance with sanction and delegation of financial powers
  • Utilisation certificates for grants and funds released
  • Documentation of procurement decisions and tender processes
  • Stores and asset records held by the unit

Questions that arise

  • Which law and which authority govern this particular audit?
  • Were funds applied to the purposes for which they were sanctioned?
  • Were procurement and sanction procedures followed, and is the file complete?
  • Do the unit's records reconcile with treasury or bank records?

Official sources

This states experience of such audit work. It is not a statement of any current appointment, empanelment or endorsement by a government body; any such statement requires separate verification and partner approval.

Discuss government and cag audit

A partner will take the call. If it is easier, say what the matter concerns and we will arrange a time.

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