Para 1.1.5 — MSO

1.1.5 Section 13 of the Act enjoins on the Comptroller and Auditor General the duty to audit all expenditure from the Consolidated Fund of India, of each State and each Union Territory having a Legislative Assembly. The audit of expenditure is comprehensive and includes:

(i) audit against provisions of funds;

(ii) regularity audit;

(iii) propriety audit;

(iv) efficiency-cum-performance or value for money audit; and

(v) systems audit.

The completeness and accuracy of accounts is examined in audit to verify that there is proper voucher or proof of payments. Audit against provision of funds is aimed at ascertaining whether the moneys shown in the accounts as having been disbursed, were legally available for and applicable to the service or purpose to which they had been applied or charged. The objective of regularity audit is to see whether the expenditure conforms to the authority, which governs it. Propriety audit is directed towards examining the propriety of executive action beyond the formality of expenditure to its wisdom, faithfulness and economy, and bringing to notice cases of waste, losses and extravagant expenditure. Efficiency-cum-performance or value for money audit is a comprehensive appraisal of the progress and efficiency of the execution of development and other programmes and schemes wherein an assessment is made as to whether these are executed economically and whether they are producing the results expected of them. In systems audit, organisation and systems governing authorisation, recording, accounting and internal controls are analysed and standards of quality and performance evaluated.