Audit Manual - Core Treasury System Uttarakhand

Government of Uttarakhand
Audit Manual
3 Steps to be taken in an Audit
The brief steps to be followed while conducting and concluding an audit are outlined as
under
Step – 1
The Audit Plan should be duly approved by Government clearly detailing the departments
(HOD‘s /HOO‘s/details of DDO‘s) to be audited. It should also define the type of audit to be
conducted for each unit. The types of audits are classified as under:
i. Transaction Audit
ii.
iii.
System Audit: System Auditing is the process of collecting and assessing evidence to
show that safeguards to protect against abuse, safeguards assets maintains data
integrity and allows the organisation to continue successfully
Performance Audit: Performance audit is an independent assessments or examination
of the extent to which an organization, program me or scheme operates economically,
efficiently and effectively.
Three E’s of Performance audit
Economy ---- Economy is minimizing the cost of resources used for an activity,
having regard to appropriate quality. Economy issue focuses on cost of the input
and processes
Efficiency--- Efficiency is the relationship between the outputs, in terms of goods,
services or other results and the resources used to proudes them. Efficiency exists
where the use of financial, human, physical and information resources is such that
output is maximized for any given set of resource inputs, or input is minimized for
any given quantity and quality of output.
Effectiveness--- Effectiveness is the extent to which objectives are achieved and the
relationship between the intended impact and the actual impact of an activity.
Effectiveness addresses the issue of whether the scheme, program me or
organization has achieved its objectives.
iv.
Concurrent Audit: Concurrent audit is a systematic and timely examination of
transaction on a regular basis to ensure accuracy, authenticity, compliance with
procedures and guidelines. The emphasis under concurrent audit is not on test checking
but on substantial checking of transactions
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