Regulation 166 — Audit Regulations 2020
Original Rule Text
# 166. Timeliness, correctness and completeness of accounting information to be ensured
(1) In order to enable the Comptroller and Auditor General to discharge accounting functions effectively, the Government needs to establish and enforce systems including internal controls to ensure that all primary accounting units render necessary information in the time schedule prescribed by the accounts office and that the information rendered is correct and complete. (2) In particular, in the case of IT systems used to generate accounting information, the Government needs to ensure that the integrity, nonrepudiability and reliability of such information is maintained through adequate and effective controls. (3) In keeping with Section 18(1)
(a) of the Act Comptroller and Auditor General is authorised to inspect any Office of accounts of the Union and the State, including Treasuries, to obtain an assurance on the internal controls in place. The objective of such an inspection would be to assess the state of general financial control to see that subsidiary records on which such accounts are based are properly maintained in prescribed forms, are complete in all respects and financial rules and orders are observed in their preparation and maintenance.
What This Means
The government must ensure that all primary accounting units (treasuries, drawing officers, etc.) submit accounting information on time and that the information is correct and complete. This requires establishing systems and internal controls. For IT systems generating accounting information, the government must ensure data integrity, non-repudiability, and reliability through adequate controls. The CAG is authorized under Section 18(1)(a) of the Act to inspect any government accounts office, including treasuries, to verify that internal controls are in place, subsidiary records are properly maintained, and financial rules are being followed.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Government must ensure timely, correct, and complete rendition of accounting information
- 2Internal controls must be established for all primary accounting units
- 3IT systems for accounting must have controls for integrity, non-repudiability, and reliability
- 4The CAG can inspect any accounts office including treasuries under Section 18(1)(a)
- 5Inspections assess the state of general financial control and record maintenance
Practical Example
The AG (Accounts and Entitlement) Kerala finds that 30% of district treasuries are regularly late in submitting monthly accounts, delaying the compilation of the state's financial accounts. The AG reports this to the Finance Secretary, noting that the government needs to strengthen its monitoring system. Meanwhile, the AG (Audit) Kerala inspects the Thiruvananthapuram Treasury under Section 18(1)(a) and finds that the new IFMS (Integrated Financial Management System) lacks adequate audit trails for reversed transactions, creating a risk of unauthorized modifications to payment records.
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 'non-repudiability' in the context of IT accounting systems?▼
Can the CAG inspect treasuries that have been taken over by the state government?▼
What does 'primary accounting unit' mean?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.