Para 17.4 — Internal Audit is conducted primarily through on-t
Original Rule Text
17.4 PROCEDURE FOR CONDUCTING IA 17.4.1. The work relating to IA should normally be conducted by inspecting various units and offices and "on the-spot" verification of accounts records. IA should also review reports relating to physical verification of assets, work sites and delivery of goods and services. The work of the inspection parties may be coordinated through IA cell at the Headquarters, depending upon the nature, number and size of the IA set up. The IA Wing shall make use of the IA Online System provided by O/o CGA for performing all audit functions and monitoring of audit paragraphs. To operationalize this, the legacy data prior to adoption of system would need to be entered in the system one time by the IA Wing concerned.
17.5 QUANTUM OF AUDIT 17.5.1. An IA party should conduct a general review of all the accounts records maintained by an office since the last inspection or in case of new units, since the formation of that office. IA manual of the Department shall cover the methodology and process of selection of units to be audited and records to be inspected apart from the records on physical verification of assets and services. Apart from the general review, it should also conduct a detailed check of accounts records of at least one month in a year, selected by the Controller/Deputy Controller in charge of IA. Sampling techniques shall be used to select the sample data for IA. Since most of the payment and related records are now available in the electronic form, audit team shall analyse the data and prepare relevant questionnaire. Responses may be collected and draft para in such cases may be prepared before actual visit of the audit team. The percentage of bills/vouchers/cases etc. other than the month selected for detailed check will be left to the discretion of the Head of the IA party/team. While PFMS reports of various modules should be used in the process, it is also advisable to use analytical tools over PFMS data. The extent and nature of checks will include the following:
(a) Detailed scrutiny of accounts records required to be maintained in PAOs/ DDOs offices;
(b) Scrutiny of records of procurement, tendering, GeM, approvals and award of work/service/contract;
(c) Scrutiny of the sanctioning and purchase procedures so as to ensure that they are free from any defect or lacunae;
(d) Verification of payment and accounting procedures including procedures to be followed by cheque drawing DDOs. It will be seen in particular that the scope and extent of precheck and post-check by PAOs are adequate and that the procedures for maintenance of provident fund accounts, finalization of pension cases etc. are duly observed;
(e) It may be ascertained that all returns and reports are duly verified by the supervisory officers and adequate safeguards are there to ensure that transactions are reviewed regularly.
(f) Verifying the extent and frequency of controls and checks exercised by head of office to locate risks, that may cause frauds or defalcations either individually or in collusion. Wherever necessary, steps to remove such risks/lacunae will be suggested;
(g) Checking the procedures followed for disposal of assets etc. to ensure they are as per laid down condemnation and disposal procedures;
(h) Scrutiny of general office management procedures adopted by the heads of offices in areas having financial and accounting implications, so as to suggest measures for tightening up administrative and financial control, savings in expenditure or streamlining of processes and procedures, including accounting.
What This Means
Internal Audit is conducted primarily through on-the-spot inspection of accounts records at field offices, supplemented by review of physical verification reports and delivery of goods/services. The IA Wing must use the CGA's IA Online System for performing audit functions and monitoring paragraphs. A general review of all records since the last inspection is required, along with a detailed check of at least one month's records (selected by the Controller). Sampling techniques, data analytics, and PFMS reports should be used to enhance efficiency. The quantum of checks covers everything from procurement and tendering to pension cases, GPF accounts, and NPS compliance.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1IA work is conducted through on-the-spot verification at field units, coordinated through the IA cell at headquarters
- 2CGA's IA Online System must be used for all audit functions and para monitoring
- 3General review covers all records since the last inspection; detailed check covers at least one selected month
- 4Sampling techniques and data analytics tools should be used over PFMS data for enhanced scrutiny
- 5Checks cover: accounts records, procurement/tendering, sanctions, pay fixations, GPF/CPF accounts, NPS, pension cases, broadsheets, and reconciliation
Practical Example
An IA party visits a PAO that processes 500 bills monthly. The Controller selects June 2025 for detailed check. The team first runs PFMS data analytics to identify high-value payments and unusual patterns, then prepares targeted questionnaires. On-site, they verify all June vouchers against sanctions, check pay fixation orders for correctness, review the GPF broadsheet for missing debits, confirm NPS contributions are correctly recovered, and verify that the PSB Suspense broadsheet is reconciled. They also review procurement files for GeM compliance.
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 minimum quantum of detailed checking?▼
Should IA parties use technology in their audits?▼
What checks are specific to DDOs without cheque-drawing powers?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.