Para 2.6.11 — MSO

Audit Objectives and Scope 2.6.11 The objectives of audit of accounts of autonomous institutions under Sections 14, 19 and 20 of the Act are two-fold: the first is aimed at watching utilization of the financial assistance provided by Government and the second is concerned with the certification of annual accounts. Though the scope of audit under all these Sections can cover both these objectives depending on the facts of each case, in practice however, the certification of annual accounts is undertaken only under the provisions of Sections 19 and 20, while the audit of utilization of Government assistance can be undertaken under all the Sections. In the case of autonomous bodies which depend on Government to a considerable extent for financial assistance for execution of their schemes or to tide over ways and means difficulties, mere certification that the accounts present a true and fair picture of the body on a particular day cannot be considered adequate for the purpose of audit. It is essential in all such cases to go beyond the requirement of certification of annual accounts and to probe into aspects relating to efficiency, performance, propriety, etc. in relation to the utilization of the resources made available to them by Government. For all practical purposes, no distinction need be drawn between “audit of receipts and expenditure” referred to in Section 14 of the Act and “audit of accounts” referred to in Sections 19 and 20.