The authority for audit is derived from the Constitution of India read with CAG’s DPC Act, 1971.
The Office of the Director General of Audit, South Western Railway, Hubli has been entrusted with the work of auditing the accounts of South Western Railway. This office also audits the Public sector Undertaking Hassan-Mangalore Railway Development Company.
Audit, Audit Plan and Audit Process:
Audit :
The office conducts Audit of three types viz.
- Financial Attest Audit
- Compliance/Regularity Audit
- Performance Audit
In Financial Attest Audit, the office expresses an opinion in the form of certificate on the accounts rendered by the Railway Administration.
Compliance Audit refers to examination of the transactions relating to expenditure of the audited entities to ensure whether the provisions of the Constitution of India and applicable Laws, Rules, Regulations, various orders and instructions issued by the concerned authorities are being complied with.
In Performance Audit, the office takes up scheme or an activity implemented by Railways. This would involve analyzing records at Zonal Headquarters Office or at Divisional Office or any other field offices. A comprehensive analysis of the entire activity/scheme is taken up to ascertain the level of achievement of the objectives of the scheme or activity with suitable recommendations.
Audit Plan :
An annual audit plan is drawn up every year based on the risk assessment of the auditee unit carried out on the following parameters:
- Financial materiality
- Inherent risk
- Control risk
After assessment of the risks associated with the unit,the auditee units in different categories viz.annual,biennial,triennial etc; are takenup during the year.
The office also identifies schemes, functions and activities implemented by each department on the risk parameters and takes up Performance Audit or Theme based audit of schemes or activities of the department as directed by the Headquarters.
Audit Process:
In central audit, test check of accounts and vouchers received from the Railways wherein compliance to financial rules and departmental codes are evaluated. The results of such audit tests are communicated to the department in the form of Test Audit Notes.
Apart from the Central audit, inspection of the concerned departments are taken up at unit level and Headquarters level. Based on the findings audit comments in draft form are received in headquarters sections of the office which are further vetted for accuracy and correctness of the comments. This inspection reports are then issued to the auditee unit after approval of the Deputy Director. At each stage the department or the auditee unit is given every opportunity to state its position on the audit comments.
The above processes are followed even when a performance audit/theme based audit of any scheme is taken up for audit scrutiny. The report is issued to the General Manager under the signature of the Principal Director of Audit. The General Manager of the Zone is invited for an entry conference at the outset and results of audit are discussed in an exit conference.Based on the replies of the department/auditee unit, the audit comments are treated either settled or noted for further follow up. Important comments are included in an Audit Report published at the end of every year which is submitted to the President for placing before the Parliament.