Railway Accounts Department Examinations

Showing posts with label 3 fold. Show all posts
Showing posts with label 3 fold. Show all posts

Tuesday, December 6, 2022

3 fold Object of Statutory Audit

 3 fold Object of Statutory Audit


Source: 116 F1 - Para Number 16 of Chapter One of Finance Code Volume One (Revised edition of 2022)


Broadly: 

 

Accountancy Audit - accuracy of arithmetical calculations and supported vouchers


Appropriation Audit - checking the correct Classification of expenditure or not 


Administrative Audit - Audit of Sanctions as per rules and regulations


In Detail: 


Accountancy Audit: 


  • To check the accuracy of arithmetical calculations and to see that all payments are supported by receipted vouchers.

 

  • Akin to the audit by company auditors whose objectives are detection of fraud, detection of technical errors and the detection of errors in principle. 

 

  • It assesses the adequacy of the accounting system and the system of internal check in the organization. 


Appropriation Audit: 



  • Check the classification of expenditure to ensure that expenditure and receipts have been charged to the proper heads of account


  • Also, the voted appropriations under these heads have not been exceeded. 


  • Part of Parliamentary control over Railway Finances. 


Administrative Audit: 


  • Audit of sanctions to check that expenditure has been incurred according to prescribed rules and regulations


  • If not, it has been sanctioned by a competent authority.