About government audit

iamakp07 · 12 May 2025

Government audit refers to the independent examination of financial and operational activities of government departments, public sector undertakings, and autonomous bodies to ensure accountability, legality, and performance. Objectives: -Ensure accountability of public funds. -Check legality and regularity of transactions. -Evaluate economy, efficiency, and effectiveness (3Es). -Promote transparency and public trust. Types of Government Audit: 1. Financial Audit – Checks accuracy and fairness of financial statements. 2. Compliance Audit – Verifies adherence to laws, rules, and procedures. 3. Performance Audit – Assesses achievement of objectives using 3Es. Authority: Conducted by Comptroller & Auditor General (CAG) under Articles 148–151 of the Constitution. Governed by CAG's (Duties, Powers and Conditions of Service) Act, 1971. Audit Process: 1. Planning – Risk assessment and audit strategy. 2. Execution – Testing controls and substantive procedures. 3. Reporting – Findings and recommendations reported to legislatures. Standards Used: Government Auditing Standards (CAG) ICAI’s Standards on Auditing (where applicable) International Standards (ISSAIs) Recent Trends: Use of IT audits and data analytics. Focus on sustainability and outcome-based evaluations. This audit ensures the responsible and efficient use of public resources, supporting good governance.