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Propriety Audits
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is either held by
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either
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Ministerial
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Parliamentary Act Legislative
Act Indian Railways
eg Llc 072 PostalServices

CARRIED out by CEAG through Indian

 Audit e Accounts Department

Articles 14870151 Contains

WHOLAG about CEAG
everything
Quotations i There is no specific Qualification
Aperson
for CAG ie
of
High Integrity Ability
is eligible
Appointment By Presidentof India
CNominated by PM
Same Equivalent to
SalaydAllowances CJ 1
Chief JusticeIndia
Tender Completing Ageof 65years
whichever Is Earlier 6 Years

to Approval by POI
Resignation Subject
Remords a There shall be proven
Misbe aviour
Mi's conduct
of his
Reasons
position Incapacitated
in both houses
b 2138 of
oting Parliament with
final Assent of POI
Auditor Gouteo
 Robs app
to appoint
1subseauentAudggontio
of
Powers to
Powys
invest gate
Investigative
public Servant
anyPublic entity
to carry out compilation Accounts
onion state 07 of
of
Duty after compilation off Audit
to lay down f.si Audit report to
I a
President India Stategogueenae Chief
of Adm of
in castof Union gout in casegsG L
or
Fu caseque
Auditof Goutco r wheel 51908 U R Pose is held
by GG S6 both
d
conducted by firmof chartered Accountants
who shall Audit as per Directions Givenby
CEAG shall deepattheie AREfindings to
CAGg who if thinks fit may ask the
Auditors to Carry out supplementaryAud
Test Audit
Cifrequired
Oneofthe uniquefeatureof Audit Conductedby
Accounts is
IAA DC Indian Audit Department
Constitution Audit Boards
of
toe Conducting Comprehensive AuditAppraisals
 PSUs
ofthe walkingSectors which are Engaged
in Diversified
of like C CIL on one
d
where need Experts awakened
I of
Boards associated with theseExperts
Auditing Get
to discuss their findings Conclusions with Mgt
ofthese PSUs their controlling Ministries toget
their view point before finalization
d
The deesults
of Such ComprehensiveAppraisals
by Audit Boards with Experts areIncorporated
CAG in his reports which shall be
bylaid down before Authorities
Note Such Audit Boards have no Separate
Entity work under DRS of CAG
I
ActionAuditReport As Parliament
Assemblies are Occupied with Excessive
work Loads i These repeats are to be
reviewed defend to various committees
made by Parliament State Legislatures

s cfficaccooms
Committee
Estimates
Committee
COLI
Cominit ee on
PUBLIC Unbertakin
d d d
 Dates Duties
Money well
disbursedLegally
Reportson Eeg
parliamentary
ofPolicies
É TT
repeated
Accounts
onprojects Ps
checkingprepare undertaken of
To Examine
which theyhave SuggestAlternate
forapplied policies
departsgeeing
on Psus
Expenditures Invited Examinewhether to Examine
are Authorised Spent's EfficiencyofPsus
Re Appropriation ifmade Money
well withinLimits
mustbe within rules suggesttheforms to check whether
Regulations
In which estimates inRusallaunning
sound ways
Shallbe informed as not
to Parliament to exercise Auch
functions which
between PACE cop u to PAC
E Mapa Diff check belongs
is PAC Keeps on GoutDept Eec but given
scopo Keepscheck PSUs in by SpeakerofParliament
on Samay
I focusof these Committeeexaminations are not onlyont
FudindivalInequalities but also on system
Irregulaties which are required to be Corrected
CEAG note in PSU Audits
friend
CEAG Acts as I philosopher Tomittees
guide in Pso
Audits
His repeats forms basisfor Camittees
de
but doesn'tExclude other markings
 He scrutinizes thenotes
ofCommittee
whichthinisteries
Submit to committees
helps in checking
2 2
cancers fats f guy 9 Ates
Helps the Committees in presenting their
depart to Parliament state legislative
Assemblies
doesn't of
committees
Az CEAG walks asperform functions
in helping
just
manner
philosopher

Ones
Financial Audit
Ifdown reasonable
to lay
Peay
Assurance on Fs PSU
of
Compliance Audit to check Regularity
propriety ie Process
Purpose
Propriety Audet to identify the Casesof
Needless wasteful
expenditures

AyprehusinAudit In values Assessing

on
the overall Efficiency effectiveness
public Euteepuces by comparing
with
 thee peel pre
mined objectives standards
Antelias
Pertamina Audits to check an Entity on
d d Ie
Economy Efficiency effectiveness

To leisure that Organizations Decisions

Shall be takenby competent Authorities
Decisions shall be consistent with objectives

Helping government to improve efficiency

in their Schemes
Effectiveness projects
the Causes Inconsistencies
of
By Analysing
Shortfalls
Highlighting issuesof Efficiency Economy
in operations
Fiscal 0 Managerial Accountability
I
Auditoffends Telefe
Auditofsanctions
wise

Auditof Compliance
Auditof propriety

Elements PSUAudits
of
 Ts
Ci
Cutypogy
Subyettnatter
ang

t
Matter into

Auditor
t
SubtedMatta
t
Attestation
Supreme Audit Inst
CSAI
Activity that where Resp
is measured
PartyMeasure
CIGZAAD Against
Criteria
subject Matter
Resembleparty Criteria againstaiten
Auditee's raged cwa Benchmarks presents
Matter
responsiblefor Managing usedto evaluate subject
Addressing Recommendations SubjectMattel into toAuditor
IntendedUses Abetting s
Reasons to whom
Auditor outcome of
theirAuditor

Eualiational
I
Addresses we A p Measurement

of subject matter
with criteria
I Gathusane
Did Repentgeny provides
Where Auditorhimself Measures Reasonable
theSubjectmatter against Criteria Assurance
gathers subject matter into

PSU Audit
Principles
of
to
quuealpurnaples ng
Auditproy
Fidependeethies Playing phaser
professional pudganut Terms
Card behavior AKOgang
CB
Quality control RAP
fraudIdentification
Audit team Mgt skill Develop AuditPlan
Audit Materiality Exam phases
Audit Risk
Documentation perform planned Audit
Communication ObtainsAAE Conclusion
Evaluated Draw
Reportingoffollowup
Prepare Ton basis
conclusion
of upon RelevantMatters
follow

Columnists
14311 143,61 14347
Compliance of supplementary
13915 Aug TestAudet
913917 I
within todays Order
Issuingdeepaetto may
CAG conducted GAG mayto to conduct
Auditor CAGDirections
Duct TestAudet
Action to betaken repenting Conduct
on its financialsdeparting it seas to
Impact meet
Thisrepent requirement
CHAO
along with CAG ofAd
loments Shallbe 1971
forwardedto
015136
EveryoneCO's
of Act
 Conducted oppress
Find'ALAUDI opinion on AS
to enhance theDegree
Eid to intended
of confidence
users on Fs
whetherAS whether
are prepared as
deephebents
Aspel AFRA ThuedFairview
COMPIINCEAUDI fouristocheek
whether Activities financial

I
Concerned with
tangtuformations
s
Comply with Regulatayd
other mules of Regulations

FPropIgpose
Process
REGULARITY
Observing whether
To checkwhether the Decisions taken by
Actual compliance was
are matching with publicEntity
Reauined Compliance
y y
asper ethical
net to ensure sound by
dugularity in compliance financial conduct
OLLE R Mgt ofpublic
officials
of Needless
Cases
Stcaube Mixed
with other Audits wasteful Action by
Mi's Management
Abedone Withwathaubecombined
separately as Audit with Performance
compliance Offs Audit
PERFORMANCE AUDIT

Meaning St Independente
Systematic Examination
time

of resources deployed bytheentity

to provide Assessmentof the
performance ofpublicEntity'sprograms
scheme functions Activities etc
So as to Suggest them Improvements
on the same
to also facilitate in taking
corrective

Actions

Subo dinated
through Various
Conducted by Cf AG
offices of ZAAD
In Conducting Performance Audit CGAG
Evaluates
A Evaluates how to Minimize cast
Econogy
desources best
of By Getting
prices but keeping
I Delivery
Appropriate Proper MDHme
Quantity quality
B Evaluates how to Maximise
Efficiency
 output Iuputfoutputratio
with Gurren
resources

Bf
procurement to be
TFitintifficientT
Resources
Peducing
optimum
Management operating utilizationYou
practices protected procedures
CheckingQuality mdaintained
alTender Systems
Iowas

Proper organization ti
Appropriate Execution
of Departments regulations

C
FILE mess Effectiveness is also about
checkingthe Budgeted Time at east
ofprojects
PSUs in comparison with their estimated
of
Time of last Involved offinding out
variances
Extent to which objectives are achied é
the aulationship b w theIntendedImpact
the Actual Impactofan entity
It includes various Areas to be Analysed
an Auditor
by
Understanding effaluatigobjected
Tstudying applicabletamedReg
 By
whether objectivesareproper consistent
Suitable
4
understanding Inhibiting factors
banters such as Fusufficienyoffends
tow wage dates fake jobcards
Analysisof kilts
Control
checking Adequacyof Management
System for Measuring Monitory
repeating effectiveness
Socio Economic Impact policy pregame
of
effectiveness
Chaini
of Program components
Developing projects Implementation
Payments
etc
a
Suggestions
Alternatives to Execute thesamePrograms
make Effectively
Identifying waysofmaking it mareeffective
whether
program Complements Duplicates
Overlaps Counteracts other relatedprograms

Factors to be considered while plaiming

PEET ALI Is
DocumentsofEntity
Docs
 Leg Documents
U
M policy
CAKOCB Past Audits
Media coverage
special focusgroup
WorldBank repent

Defingingobpectinesdscope ofaudet
Ensue Scope Gives
Settingobjectives Limitations
Good Quality Clarity on
Parameters

Determine Audit Criteria

standards program
meets
or Exceeds the Expectations

DecidingAuditApproad making use

of
ExistingData
Case Studies
Surveys
Quant tative
Analyses according to the Subjet
type under Audit
Deuleping AuditQuestions t ListofQuestions
is Answers
on which the Audit Team Seeking
Comprehensive Questions
Reamuement
Assessing AuditTeam Skills of
ExpedTeasure Fam f Tyagement
shall be Capable Competentenough to meet
dualukement of performance Audit Directions
Directions CAG must ensure planning
of
stage whether Experts are Required not
 Preparing ADMCAudIDesignated
s
consistingof following Columns
I 2 demidempata
Audit Audit Audit collection
Objective Questions criteria
Analyse's
Method
Timetabled Relayed
Estable
Ensuing toframe timetable taking buffeeq
within which the Audit
Shall be completed TimefoeApprovals
Monitoring ofProgress possible delays
Ensuring the Damned
ResourcesAvailability
Antimony Auditprograntouditentities
TKusuee the Take Acknowledgement RecordReasons
Assistance onme
ofthesame ofchangeiy
afterIntimation
COMP
I fysive.AM Assists the
Legislature
in
Alsoknown Owls UM reviewing of
as efficiency Areas fromentity peetamompsos
compeetaimanceother than toentity Concentration is on
Audit conned by Again Efficiency
InternalAuditor Effectiveness
 onomyof
I
operations

Itis done by comparing theperformance

with determined objectives
pre
standards Criteria
d
Assueslound
followingaretheAreas
Research t
Delopment Programsanotists
Project planing is Adequate
Systemof perfectformulation Implementation
is sound aint
overall capital last with Approved
Comparing
planned last Onder
Evaluation
of capacity utilization shortages
whether cast Control measures are Adequate
whether there is undue wastage unprod
time etc
whether products are Economical effective
whether planned matequeturni'sAchieved
Systemof Repairs Maintenance

Properiary Audie
Derivedfrom
j
an Audit wheel
ward proper where we 90 all
the mules check
beyond
d regulations substance
action
 Document of
Concentrates on 2 Areas

IIns
whether Expenditure is pp
whether it is
gunned as per
Incurred for
Commh
Accepted Standards PublicAmarese
customs of
conduct RealBenefit
whether Psu Goutentities to public
Achieved financial Pro pence Large
Achievedor not
financial Audit when
Very Differentfrom to Evidences whereas
Auditor is detected
in Property Audit the Auditor is Interested
in Identifying cases of Impropriety Needless

wasteful Avoidable Expenditures

I
Based on Uamous Principles

Expenditure shall not be more than an

Occasion Demands prima facie
While spending whether Same Degree
of vigilance is applied as aperson of
Ordinary prudence would Exercise
 Not to be utilized for benefitof particular
person Group of persons
Should not mesult into DirectIndirect
benefit to Authorities Sanctioning
Expenditure

Remuneration no
Apartfrom Agreed
other Avenue is keptopen to benefit
queen nut Employees as others Indirectly
claiming Reimbursementof Expenses
without any proof

consontfigggijmpanttainnas
Clause3 4 8 9 10 11 13,15 1434 67,70
18 143427 etc
Problem in Propriety It is a Moral concept
which can't be justified with proofs
Evidence because Impropriety Expenditures
Sometimes been Incurred within
may
constitutional Rules Regulations
Therefore it can only be understood
an Auditor is able to Display theLogic
if behindthose Wasteful Needlessexpenditures
Its a pure matter of subjectivity
 To deal with 11 CDG has Developed Some
Norms
It is a objective Approach where onehas
to
explain the need Aramstances
of Business class is only
Gg Traveling by Travel Time is
the
unjustified if
Shatt
very
CAG Audit Report

padded Etretttggnificant
Review
Interpandgmatim
General of
forupfor
entities
gout
nettaken
summary
Comprehensive co Auditors
Resultsof
appraisalsbyAnted depart Guen Appraisal
asperBustauction of
Audit
of CAG Board
Small States commercialchapter
format States in mainRepent
Large
Separate Audit
report
I May contain performance Appraisalof Selected
Companies Capo AlsoIndividual instancesof
financial Irregularities Wasteful Expenditures
System Deficiencies etc