CONTENTS - Central Public Works Department

318 SECTION 54
the accounts set up. Accordingly, Internal Audit Organisations have been set up in most of the Ministries/
Departments. The scope and function of the Internal Audit Organisation will depend on the nature of work,
the number of subordinate offices, the strength of the establishment, nature and quantum of expenditure
etc. Each Ministry/Department will, therefore, draw up a Manual of Internal Audit, specifying the duties
and functions of the organisation, with particular reference to the conditions prevailing in the Ministry/
Department. The guideline contained in the ensuing paragraphs will regulate the working of these
organisations, but these are of a very broad nature, and have to be supplemented by detailed instructions
to be issued by each Ministry/Department.
54.17.1 Scope of Internal Audit
The Internal Audit Organisation will work directly under the CCA with overall responsibility for internal
audit remaining with the or the Financial Adviser of the Ministry/Department concerned. The Principal
Accounts Office, the Pay and Accounts Office as well as the office of the D.D.O’s in the Ministry/Department
shall be within the jurisdiction of Internal Audit. This organisation shall also check initial accounts maintained
in the executive offices with a view to ascertaining as to how far they are following the rules and regulations,
systems and procedures regarding accounting the financial matters. The Internal Audit should, inter alia,
cover checking of all accounts records including those relating to fund accounts, loans and advances,
and records of physical verification of stores, equipments, tools and plants.
54.17.2 Duties of Internal Audit
The duties of the Internal Audit Organisation will, inter-alia, include the following:
(i) Study of accounting procedure prescribed for the Department with a view to ensuring that
they are correct, adequate and free from any defects or lacunae;
(ii) Watch over the implementation of the prescribed procedures and the orders issued from
time to time.
(iii) Security and check of payments and accounting work of the accounting units;
(iv) Investigation of important areas in accounting and other connected records;
(v) Co-ordination with other Ministries and C.G.A. regarding internal audit procedures;
(vi) Periodical review of all accounts records;
(vii) Pursuance/settlement of objections taken in Test Audit Notes issued by the statutory audit
offices, and other matter relating to statutory audit;
(vii) To examine and report on points or irregularities brought to its notice by the Principal Accounts
Officer/P.A.O’s.
(viii) Preparation and submission of Annual Review on performance of Internal Audit Wing to
comptroller General of Accounts
54.17.3 Procedure for conducting internal audit
The work relating to internal audit should normally be conducted by visiting the various units and
offices, and by ‘on the spot’ verification of accounts records. The work of the local inspection parties may
be coordinated by Internal Audit headquarter, depending upon the nature, number and size of the internal
audit parties.
54.17.4 Quantum of audit
An internal audit 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 the office. Apart from the
general review, it should also conduct a detailed check of accounts records of one month in a year to be
selected by the Controller/Deputy Controller in-charge of internal audit. The percentage of bills/vouchers/
cases etc., other than those pertaining to the accounts records of the selected month, to be checked in