Welcome TO A Talk ON Auditing Standards
Welcome TO A Talk ON Auditing Standards
Welcome TO A Talk ON Auditing Standards
TO
A
WELCOME
TALK
ON
AUDITING
STANDARDS
INTRODUCTION
• Audit Mandate -
• CAG’s (DPC) Act 1971 prescribes functions, duties
and powers of SAI
• Audit Mandate includes Audit of
• Receipt and
• Expenditure from Consolidated Fund
Introduction
(contd….)
• Contingency Fund and Public Accounts
• Trading, Manufacturing, Profit and Loss Account and
Balance Sheet
• Accounts of Stores and Stock
• Government Companies
• Statutory Corporations
• Authorities and Bodies substantially financed
• Grants and Loans for specific purposes
Audit Objectives
• To safeguard the financial interests of the
Government
• Uphold and promote public accountability
• Sound and economical financial practices
• Audit assists Parliament/Legislatures in exercising
financial control through
• PACs/PUCs
Audit objectives
(contd…)
• Executive Governments and not Audit is
responsible for enforcing economy and efficiency
in expenditure
• Scope of Audit
• Term includes financial as well as performance
audit
Auditing Standards
• Prescribe the norms of principles and practices
which the Auditors are expected to follow in the
conduct of Audit
• Basic postulates
• General Standards
• Field Standards
• Reporting Standards
1. Basic Postulates
• Basic assumptions,logical principles and
requirements to help in developing auditing
standards and serve the auditors in forming their
opinion and reports
• Auditing standards shall be complied with by the
auditors in all matters that are deemed material
• Auditor shall apply their own judgement to the
diverse situations that arise in the course of
Government auditing relating to
Basic Postulates
• There shall be an accountability process in
operation
• Govt shall be responsible for establishment,
development and enforcement of adequate
information, control, evaluation and reporting
systems within the Government to facilitate the
accountability process
Basic Postulates
• Appropriate authorities in Govt shall ensure the
promulgation of acceptable accounting standards
for financial reporting and disclosure that are
relevant to the needs of the Govt and that result
in true and fair presentation of financial position
and results of operations
Basic Postulates
(contd….)
• The Govt shall establish an adequate system of
internal control to minimise the risk of errors and
irregularities
• Govt shall ensure cooperation of auditable entities
in providing access to all relevant data,
information and documents necessary for audit
• All audit activities shall be consistent with the audit
mandate of the CAG Of India