RTI, Jaipur AUDITING STANDARDS

RTI, Jaipur Introduction Audit Mandate - CAG’s (DPC) Act 1971 prescribes functions, duties and powers of SAI Audit Mandate includes Audit of Receipt and Expenditure from Consolidated Fund

RTI, Jaipur Introduction (contd….) Contingency Fund and Public Accounts Trading, Manufacturing, Profit and Loss Account and Balance Sheet Accounts of Stores and Stock Government Companies Statutory Corporations Authorities and Bodies substantially financed Grants and Loans for specific purposes

RTI, Jaipur Audit Objectives To safeguard the financial interests of the Government Uphold and promote public accountability Sound and economical financial practices

RTI, Jaipur Audit assists Parliament/Legislatures in exercising financial control through PACs/PUCs

RTI, Jaipur Scope of Audit Includes: O Performance Audit O Regularity Audit Financial Audit Compliance Audit

RTI, Jaipur Basic Postulates Audit must exercise his best judgement in determining - audit procedure basis of forming opinion contents of his report due professional care independence

RTI, Jaipur Auditing standards can be broadly grouped under 1General Standards 2Operational Standards 3Reporting Standards

RTI, Jaipur General Standards AProfessional BManuals and Instructions CQuality Assurance

RTI, Jaipur General Standards - Professional Qualification Training Auditor should develop proper insight

RTI, Jaipur General Standards Quality Assurance Appropriate internal control system to ensure quality of work

RTI, Jaipur Operational Audit Standards  Audit Planning  Financial Statement Audit  Regularity and Legal Audit  Performance Audit

RTI, Jaipur Operational Standards - Audit Planning Audit should be properly guided directed and supervised sufficient understanding of the internal control system of the auditee organisation

RTI, Jaipur Operational Standards - Financial Statements Audit Financial Statements are accurate and complete True and fair view prepared based on generally accepted accounting principles sufficient disclosure

RTI, Jaipur Operational Standards - Performance Audit Achievement of physical and financial goals and targets social and economic objects utilisation of resources as per projected outlay cases of overpayment, losses, avoidable, excess or infructuous expenditure due to improper planning

RTI, Jaipur Operational Standards - Performance Audit (contd..) Delays in completion overstaffing

RTI, Jaipur Operational Audit Standards(contd) Audit of Receipts Audit of Government Companies Auditing in EDP Environment Audit Evidence (i)Sufficiency (ii)Relevance (iii)Competence

RTI, Jaipur Reporting Standards Field Audit Report - Observations and conclusions in an appropriate form Contents should be easy to understand Report should be complete

RTI, Jaipur Reporting Standards (contd…)  Accurate  Convincing  Clarity  Concise

RTI, Jaipur Reporting Standards (contd…) Report should be free from vagueness or ambiguity relevant information supported by audit evidence timeliness

RTI, Jaipur Reporting Standards (contd…) Follow up of Audit reports Adequate Prompt Proper

RTI, Jaipur Session Summary In this session we discussed : CAG’s DPC Act Auditing Standards