1. sundar Shrestha Deputy Director Of Studies NAsc
Financial Accountability and Auditing
sundar Shrestha Deputy Director Of Studies NAsc

2. Session Outline
Concept
Principles
Objectives
Existing Mechanism

3. Financial Accountability
Financial accountability concerns tracking and reporting on allocation, disbursement, and utilization of financial resources, using the tools of budgeting, accounting and auditing.

4. Principles of Accountability
Specify responsibility and authority
Provide guidance and support
Monitor and evaluate exercise of responsibility and authority
Take appropriate action

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Justice system: Reward and Punishment

8. Maintain Financial Discipline
Objectives
Maintain Financial Discipline
Allocation of Resources in Strategic Priorities
Ensuring Value for money

9. Auditing Session Outline Concept Objectives Approaches Process
Types of Audit
Types of Beruju
Public Audit and Social Audit
Public Hearing and Fiduciary Risk
Case

10. Concept
Auditing is defined as a systematic and independent examination of data, statement, records, operations and performance of an organization for a specified purpose.

11. Objectives
Verify the accuracy of the books of account
Verify the validity of the documentary evidence of the
transactions
Verify the system of internal check and control
Verify the assets and liabilities
Prevent errors and fraud
Detect errors and fraud

12. Financial Statement Audit
Auditing Approaches
Compliance Audit
Financial Statement Audit
Performance Audit
Risk Based Audit

13. Auditing Process
Notification
Planning
Opening Meeting
Management Representation Letter
Field work
Communication

14. Auditing Process
Report Drafting
Management Response
Closing Meeting
Report Distribution
Follow up

15. Types of Audit
Pre Audit: Before payment of any financial transactions, these related documents will be verified by the staff of account section.
Internal Audit: Internal audit is an independent appraisal within a department which operates as a service to management by measuring a evaluating the effectiveness of the internal control, but in GoN internal audit is being done by DTOs.
Final Audit: Constitutional provision that requires final audit to look into to compliance ,economy, efficiency, effectiveness and justification (thus, basically the final audit has two components : Financial statement audit and Performance audit)

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17. Social Audit and Public audit
A social audit is a way of measuring, understanding, reporting and ultimately improving an organization’s social and ethical performance. Social auditing is taken up for the purpose of enhancing local governance, particularly for strengthening accountability and transparency in local bodies.
Public auditing is the process of sharing, assessing and auditing all financial transactions, decisions and processes of financial expenses

18. Public Hearing and Fiduciary Risk
Public hearing is an open discourse in public place or discussion process on the public concerns or themes/issues among the general public, stakeholders (right holders) and responsible officials (duty bearers) of organization and line agencies
Fiduciary Risk
Funds: (I) are not used for the intended purposes
(II) are not recorded and accounted for; and
(III) do not achieve the value for money objectives of the program they financed