Para 17.12 — CAM
Original Rule Text
17.12 PURSUANCE OF AUDIT PARA
17.12.1 TEST AUDIT NOTES ISSUED BY STATUTORY AUDIT: In order to keep a watch over the settlement of audit objections included in the Test Audit Notes issued by Statutory Audit/CGA Inspection Team, the IA Wing will maintain a register in the form given in APPENDIX 17.3 with separate folios for each DDO. The progress made towards the settlement of outstanding objections should be reviewed on quarterly basis and appropriate action taken to ensure speedy settlement. The compliance of IA observations reported by the DDOs should be verified during the next audit of that office. Whenever asked for, the register will also be furnished to the Statutory Audit Parties to verify the settlement of objections.
17.12.2 IA para shall be reviewed regularly and reported to the Audit Committee of the Department. Status of pending para shall also be brought out in the review meetings of the Department. CGA shall also be informed through a structured report, as stipulated by CGA.
Role of Internal Audit (IA) Function: IA is an independent, objective assurance and advisory activity designed to add value and improve the Ministry’s/Department’s operations. It would facilitate achievement of Ministry’s/Department’s objectives by evaluating and improving the effectiveness of risk management, control and governance processes. IA is concerned with controls that ensure:
Reliability and integrity of financial and operating information; Effectiveness and efficiency of operations; Safeguarding of assets; and Compliance with laws, regulations and contracts.
The IA function in ____________________ Ministry would aim at improving the overall operating effectiveness of the programmes by conducting an independent evaluation of operations with respect to policy guidelines, scheme provisions and objectives and make suggestions to improve performance of the implementing units. While evaluating performance of spending units, audit would look into planning, execution and monitoring mechanisms, wherever possible from gender perspective, focus on control weaknesses and suggest ways to improve the control mechanisms. IA would also comment on risks which exist and may impede achievement of intended objectives.
IA function would also comment on compliance by various field formations with rules, guidelines and procedures established by the Government of India in general and of __________________ Ministry in particular. IA would also check the accuracy of accounting and financial records maintained by various executive offices of the _________Ministry and would focus on compliance with rules and regulations to be followed, in this regard.
What This Means
The IA Wing must maintain a register (APPENDIX 17.3) to track settlement of audit objections from statutory audit and CGA inspection team test audit notes, with separate folios for each DDO. Settlement progress is reviewed quarterly. IA functions as an independent, objective assurance activity that evaluates risk management, controls, and governance. The Chief Audit Executive (Pr. CCA/CCA/CA) reports to the Secretary through the Financial Advisor, with functional reporting to the Audit Committee. Annual Audit Plans must be finalized by January 15 and sent to CGA by February 15.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Register in APPENDIX 17.3 format tracks settlement of statutory audit and CGA inspection objections — separate folios per DDO
- 2Settlement progress is reviewed quarterly; compliance verified during next audit visit
- 3IA is independent and reports to Secretary through FA, with functional reporting to the Audit Committee
- 4Annual Audit Plan: 60% for Risk-Based IA of schemes, 40% for Compliance/Regularity Audit
- 5Annual Audit Plan due by January 15; copy to CGA by February 15; Annual Audit Review due by May 31
Practical Example
The IA Wing of the Ministry of Education maintains the APPENDIX 17.3 register with separate pages for each of its 25 DDOs. During the quarterly review, they find that DDO-12 has 8 outstanding paras from the last statutory audit — 3 have been settled with compliance letters, and 5 remain pending. The CAE brings this to the Audit Committee's attention at the next meeting. During the next IA visit to DDO-12, the party verifies compliance on the 3 settled paras and pursues the remaining 5.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is the recommended split between risk-based and compliance audit?▼
Who is the Chief Audit Executive (CAE)?▼
What safeguards ensure IA independence?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.