Under directions of the CAG, Office of the Principal Accountant General (General & Social Sector Audit), Andhra Pradesh conducts audit of 20 departments and local bodies/PSUs/autonomous bodies thereunder in the State.
Authority for audit
Authority for audit by the CAG is derived from Articles 149 and 151 of Constitution of India and Comptroller and Auditor General's (Duties, Powers and Conditions of Service) Act, 1971 (DPC Act). CAG conducts audit of expenditure of General and Social sector departments of Government of Andhra Pradesh under Section 131 of the DPC Act. CAG is the sole auditor in respect of autonomous bodies/local bodies which are audited under sections 19(2)2 and 20(1)3 of the DPC Act. In addition, CAG also conducts audit, under Section 144 of DPC Act, of other autonomous bodies which are substantially funded by the Government. Principles and methodologies for various audits are prescribed in Auditing Standards and Regulations on Audit and Accounts, 2007 issued by the CAG.
Planning and conduct of audit
Audit process commences with assessment of risk of department/organisation/autonomous body/scheme, etc. based on expenditure incurred, criticality/complexity of activities, priority accorded for the activity by Government, level of delegated financial powers, assessment of internal controls and concerns of stakeholders. Previous audit findings are also considered in this exercise. Based on this risk assessment, frequency and extent of audit are decided and an annual audit plan is formulated to conduct audit.
After completion of audit of each unit, Inspection Report (IR) containing audit findings is issued to head of unit with a request to furnish replies within one month of receipt of IR. Whenever replies are received, audit findings are either settled or further action for compliance is advised. Significant audit observations pointed out in these IRs, which require attention at highest level in Government, are processed for inclusion in Audit Reports which are submitted to Governor of Andhra Pradesh under Article 151 of Constitution of India for causing them to be laid on the Table of State Legislature.
1 Audit of (i) all transactions from Consolidated Fund of State, (ii) all transactions relating to Contingency Fund and Public Account and (iii) all trading, manufacturing, profit & loss accounts, balance sheets & other subsidiary accounts kept in any department of a State
2 Audit of accounts of Corporations (not being Companies) established by or under law made by StateLegislature in accordance with provisions of the respective legislations
3 Audit of accounts of any body or authority on request of Governor, on such terms and conditions as may be agreed upon between CAG and Government
4 Audit of all (i) receipts and expenditure of a body/authority substantially financed by grants or loans from Consolidated Fund of State and (ii) all receipts and expenditure of any body or authority where grants or loans to such body or authority from Consolidated Fund of State in a financial year is not less than one crore