Para 17.2 — CAM

CAMaccounts

What This Means

Internal Audit covers all offices under a Ministry/Department — from the Principal Accounts Office and PAOs down to DDO offices, including Indian Missions abroad. IA also audits implementing agencies for government schemes, autonomous bodies, and organizations receiving grants. The scope extends beyond compliance to include risk assessment, IT system risks, fund accounts, loans and advances, store verification, and effectiveness of service delivery. Each audit task requires a specific risk matrix covering compliance, financial, and legal risks.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

1IA jurisdiction covers PAOs, DDOs, Indian Missions, scheme implementing agencies, autonomous bodies, and grant recipients
2Scope includes compliance audit, risk assessment, IT system review, fund management, and service delivery effectiveness
3IA must draw up specific risk matrices for each audit task (compliance risk, financial risk, legal risk)
4Grant sanction orders must include a provision for IA inspection by the Principal Accounts Office
5Duties include annual/quarterly planning, risk register preparation, accounting procedure study, payment scrutiny, and banking system examination

Practical Example

The Ministry of Health's IA Wing plans its annual audit. Beyond the regular PAO and DDO audits, they include: (1) an autonomous body (AIIMS) that received Rs 2,000 crore in grants, (2) a state implementing agency for the National Health Mission, and (3) the Indian Embassy in Washington DC which handles medical reimbursement claims. For each, the IA team prepares a risk matrix covering financial risk (fund utilization), compliance risk (scheme guidelines adherence), and legal risk (procurement rules).

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

Does IA have the authority to audit autonomous bodies?▼

Yes. The accounts of all grantee institutions or organizations are open to IA by the Principal Accounts Office, whenever called upon. A provision for this must be incorporated in all grant sanction orders, alongside the statutory audit provision under the CAG (DPC) Act 1971.

How does IA differ from statutory audit by CAG?▼

IA is an internal function under the Ministry's Chief Audit Executive, focused on improving operations, risk management, and controls. Statutory audit is external, conducted by CAG under constitutional authority. IA complements statutory audit — the IA Wing also coordinates settlement of statutory audit objections.

What are the key duties of the Chief Audit Executive?▼

The CAE (Pr. CCA/CCA/CA as applicable) is responsible for IA planning, risk register facilitation, coordination with CGA and other ministries, review of accounting procedures, settlement of statutory audit objections, and submission of the Annual Review to CGA. The FA vets the annual IA plan before submission to the Secretary.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Para 17.2 — CAM

Original Rule Text

What This Means

Key Points

Practical Example

Frequently Asked Questions

Related Rules