Few sections in Audit Act 2075
"Audit" means examination of the accounts and accounts related to the
business of the bodies referred to in Section 3 and the analysis and
evaluation to be made on the basis thereof, and this term also includes an
act of follow-up audit.
3. Bodies to be audited by the Auditor General: (1) Audit of the following bodies shall
be performed by the Auditor General:
(a) Government Offices,
(b) Corporate bodies wholly owned by the Government of Nepal, Provincial
Government or Local Level,
(c) Bodies or institutions the audit of which is so specified by the Federal law
as to be performed by the Auditor General.
“Corporate body” means a corporate body of which more than fifty
percent of the shares or assets are owned by the Government of Nepal,
Provincial Government or Local Level, and this term also includes a body
of which more than fifty percent of the shares or assets are owned by the
corporate body.
8. Matters to be audited: The Auditor General shall, upon having regard, inter alia, to the
regularity, economy, efficiency, effectiveness and propriety, audit the following matters,
as required:
(a) Whether or not the amounts appropriated in the concerned heads and subheads by the Appropriation Act and other Acts for services and activities
have been expended for the specified purposes of such specified services
or activities within the limit of the same heads and sub-heads,
(b) Whether or not the accounts have been maintained in the prescribed forms
and reporting has been made within the specified time,
(c) Whether or not any Constitutional Body, Ministry, Department and
central level office equivalent thereto and a Provincial Ministry and
Province level other office have maintained central accounting of all
financial transactions including appropriation, revenues and deposits of
their respective sub-ordinate offices and prepared central statements, and
if so prepared, whether or not such statements truly reflect the financial
transactions,
(d) Whether or not the accounting of the Federal Consolidated Fund,
Provincial Consolidated Fund, Local Consolidated Fund, Federal
Contingent Fund, Provincial Contingent Fund and other governmental
fund has become realistic,
(e) Whether or not the concerned governmental body has sanctioned budget
in time,
(f) Whether or not financial statements truly and correctly reflect the
financial transaction of the period mentioned therein,
(g) Whether or not the evidence relating to items of income or expenditure
are sufficient,
(h) Whether or not physical progress has been made according to the
accounting or reporting,
(i) Whether or not approval of the authority competent to make expenditure
has been obtained,
(k) Whether or not the liability created has been paid in time,
(l) Whether or not the available resources, means and assets including cash
and in-kind have been properly utilized,
(m) Whether or not records of government properties have been maintained
in accordance with the prevailing law,
(n) Whether or not proper protection and maintenance of governmental
properties has been made in such a way to prevent loss and damage
thereto,
(o) Whether or not the arrangement for maintaining accounts of
governmental debts and investment, the principal, interest and dividends
to be received therefrom or to be owed or paid thereon and paid up is
adequate, or accounting has been made accordingly and the accounts do
maintained have been accurate,
(p) Whether or not adequate legal provisions have been made to prevent
misuse in making expenditure, the related provision for regulation and
control is adequate and these matters have been complied with,
(q) Whether or not effective provisions of internal control system have been
made, and such provisions have been followed,
(r) Whether or not internal audit has been performed in a satisfactory manner,
and if so performed, the report has been implemented,
(s) Whether or not the amounts to be credited to revenue and government
funds have been determined, recovered, credited and accounted for in
accordance with law, and effort has been made to control revenue leakage,
(t) Whether or not the prevailing law on deposit is adequate and it has been
complied with,
(u) Whether or not the accounts of income and expenditure of industrial and
business services, and their balance of cash and kind, and the provisions
relating to their financial transactions and law related thereto are
adequate, and if so, they have been complied with,
(v) Whether or not the organization, management and allocation of business
of the office are sufficient and proper, and the office has been operated
and managed accordingly,
(w) Whether or not any function is being unnecessarily performed in
duplication by various employees or agencies or any function required to
be performed is being omitted or there has been effective provision in
place for performing or causing to be performed the office business in the
specified time,
(x) Whether or not the grounds for specifying the achievements of the
organization and program are clear, progress has been made within the
specified time according to the program and the quality and quantity of
the business conform to the standards,
(y) Whether or not the objective and policy of the Office is explicit, and the
plan, budget and program have been formulated in conformity with the
specified objective and policy, and implementation has been made
accordingly,
(z) Whether or not the program has been implemented within the limits of
approved cost estimate, expenditure has been made in a proper manner by
making analysis of cost and achievement in making expenditure and the
returns have been achieved in comparison to the cost,
(aa) Whether or not the provisions for maintaining records of target, progress
and cost are adequate and reliable,
(bb) Whether or not monitoring has been made in consonance with the
requirement of monitoring under the prevailing law, and the monitoring
report has been implemented
(cc) Whether or not effort has been made to make the financial transactions,
records and reporting provision information technology based,
(dd) Whether or not the utilization and mobilization of the revenue, grant and
royalty distributed between the Government of Nepal, Provincial
Government and Local Level in accordance with the prevailing law have
been effective,
(ee) Whether or not reimbursements have been taken in time,
(ff) Whether or not the records of irregular amounts and settlement thereof
have been updated and effort has been made to settle irregularities.
17. To maintain records through electronic means: The Auditor General may maintain
through electronic means the records of audit files, working papers and other documents
of the body to be audited by him or her.
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