AUDIT CODE

Informations

• Publié par: Lomif
• Nombre de lectures: 59
• Langue: English

Extrait

AUDIT CODE 











GOVERNMENT OF HIMACHAL PRADESH




AUDIT CODE




LOCAL AUDIT DEPARTMENT
HIMACHAL PRADESH
SDA, COMPLEX BLOCK NO. 38
SHIMLA–9

TEL. NO. 0177-2620046, 2620881, 2620757
i
LOCAL AUDIT DEPARTMENT
HIMACHAL PRADESH
M E S S A G E

th(S. Parmr) Dated 29 June, 2007
Chief Secretary to the
Government of H.P.


It is a matter of great pleasure to note that Local Audit Department, Himachal Pradesh is
publishing an Audit Code comprising codification of matters in the area of auditing. It has been
our endeavour to professionalize working in the Government and publication of this Code is a
step in this direction.

I hope that Code will be of immense use to the officers and staff of the Department. I will
also place on record my appreciation and congratulations to all the members of the staff who
have done a yeoman’s job for this important assignment.



thDated 29 June, 2007
Shimla–171 002 (S. S. Parmar)
Chief Secretary to the
Government of Himachal Pradesh
iiAUDIT CODE
F O R E W O R D

thDr. Sutanu Behuria Dated 4 May, 2007
Pr. Secretary (Finance)

In today’s competitive world, it is essential that the government agencies keep themselves
abreast with the latest developments taking place around them. We need to constantly improve
our professional skills to prove meaningful to the client organizations and the society at large. For
achieving this end, we need to develop codes/manuals of best practices, organize trainings and
workshops, and move towards computer oriented working in the offices to make our working
efficient and transparent. I am glad that the Local Audit Department has initiated action in this
regard with the publication of this Audit Code being a step in this direction to provide the
necessary know how to the auditing staff at the grass root level.

This Audit Code includes codification of the best practices in the area of auditing and is
therefore very useful for audit staff of the Local Audit Department. Auditing standards and
Guidance Notes of Audit and Guiding principles for conducting the audit of various institutions
are primarily designed to provide guidance to audit staff on matters which arise in the course of
their day-to-day work, and on which they may desire assistance in resolving issues, which may
pose difficulty.

The Audit Code of Local Audit Department has been prepared after exhaustive study and
is an excellent work. This will serve as an office manual for conducting day-to-day business of
the Local Audit Department. Sh. K.K. Dharmani, Additional Director and Dr. Suneel Angra,
iii
LOCAL AUDIT DEPARTMENT
HIMACHAL PRADESH
Section Officer, Local Audit Department, H.P. put in immense effort in drafting the Audit Code.
The job of drafting the Audit Code could become possible due to close monitoring and scrutiny
of the entire process by Dr. R.N. Batta, Director, LAD-cum-Examiner, Local Fund Accounts.
These Officers deserve commendation.

I am confident that this Audit Code will be up dated from time to time and my audit staff
would make the best possible use of this edition in carrying out their professional responsibilities.


thDated 4 May, 2007
Shimla - 171002 (Dr. Sutanu Behuria)
Principal Secretary (Finance)
to the Government of H.P.








ivAUDIT CODE 

P R E F A C E

thDr. R. N. Batta, Dated 4 May, 2007
Director LAD-cum-
Examiner, Local Fund Accounts


st Local Audit Department Himachal Pradesh came into existence on November 1 1966 as
a result of re-organization of States. The department at the time of its inception was responsible
for conduct of audit of Panchyat Smities, Zila Parisads, Municipal Committees, Pupils funds of
Educational Institutions, Industrial Schools, District Relief Funds and other Miscellaneous
Accounts. Gradually, the Department was entrusted with functions of audit of Universities, H.P.
Board of School Education, H.P. Marketing Board and Marketing Committees, H. P. Housing &
Urban Development Authority, Temple Trusts, Educational Institutions including Govt. Schools
& Colleges, H.P. Language, Art and Cultural Academy Shimla, Director Smalll Saving Himachal
Pradesh and District Small Saving Prize Money, Polytechnic Institutes and Industrial Training
Institute, National Security Relief Funds, Fish Farmar Development Agency etc.

To cater to its clients more efficiently and professionally, Local Audit Department took
some path breaking initiatives. The new measures focused on both capacity building as well as
change in working systems and procedures. A generous grant was made available by the Govt. of
Himachal Pradesh to computerize activities in Resident Audit Schemes at CSKHPKV Palampur.
H.P. University Shimla and Directorate of Local Audit Department. Software to handle work in
these places has been developed and working is being made on line. Another most important
initiative is preparation of this Audit Code. It contains the origin of the department, its evolution
v
LOCAL AUDIT DEPARTMENT
HIMACHAL PRADESH
over a period of time, its structure. Auditing Standards and Guidance Notes of Audit and Guiding
principles for conducting the audit of various institutions have also been incorporated for the
guidance of the staff, which will be very much useful for the efficient functioning of the staff of
the department.
In drafting the Audit Code, state of the art literature on professional procedures followed
nationally and internationally has also been consulted. Various notification, instructions and
related correspondence made by the department from time to time in matter concerning with
conduct of audit and other related matters have been kept in view. To fulfill the development
needs of the state, requirement of a sound financial management system is an important tool of
resource mobilization/management as it prevents waste of scarce resources. Local Audit
Department will play an important role by identifying the leakages of revenue and propriety of
expenditure.

I acknowledge with thanks the valuable guidance given by Dr. Sutanu Behuria, Principal
Secretary (Finance) and Sh. Arvind Mehta Secretary (Finance) to the Government of Himachal
Pradesh in preparing the Audit Code.

I wish to place on record the untiring efforts and contributions made by Sh. K.K.
Dharmani, Additional Director and Dr. Suneel Angra, Section Officer Local Audit Department,
Himachal Pradesh in drafting the Audit Code.

The Audit Code, it is hoped, will meet the functional requirements of officers and staff of
Department and any suggestion for its improvement is welcome.

viAUDIT CODE
I an confident that the Audit Code of Local Audit Department will be up dated from time
to time and continue to serve the audit staff and other interested users.


thDated 4 May, 2007
Shimla - 171002 (Dr. R. N. Batta)
Director, LAD-cum-Examiner,
Local Fund Accounts,
Himachal Pradesh.
viiLOCAL AUDIT DEPARTMENT
HIMACHAL PRADESH
TABLE OF CONTENTS

M E S S A G E ................................................................................................................................ ii 
F O R E W O R D .......................................................................................................................... iii 
P R E F A C E.... v 
TABLE OF CONTENTS ............................................................................................................. viii 
CHAPTER - 1.... 1 
NATURE AND SCOPE OF LOCAL FUND AUDIT ..................................................................... 1 
1.1 GENERAL ........................................................................................................................... 1 
(a) Headquarter Office1 
(b) Resident Audit Schemes ..................................................................................................... 1 
1.2 THE AUDIT ESTABLISHMENT OF THE DEPARTMENT ............................................ 2 
1.3 ROLE OF LOCAL AUDIT .................................................................................................. 3 
Necessity of Local Audit .......................................................................................................... 5 
General Arrangement for Local Audit ..................................................................................... 5 
1.4 DIFFERENT KINDS OF AUDIT ........................................................................................ 6 
(a) Pre-Audit ............................................................................................................................. 6 
(b) Post-Audit ........................................................................................................................... 7 
(c) Special Audit