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AUDIT OBJECTIONS
ROLE OF AUDIT: AUDIT means Official examination of records/accounts to see that they are in order Examination of accounts officially INSPECTION means Examine carefully/visit officially to see that rules are obeyed/that work is done properly
AUDIT BY GOVERNMENT AGENCIES STATE AUDIT : for all local bodies Municipalities, Temples, Universities, PR bodies, etc COMPTROLLER & AUDITOR GENERAL OF INDIA all Government departments - public sector undertakings - major institutions like Zilla Parishads, etc.

AUDIT

TYPES
1. INTERNAL AUDIT 2. PRE-AUDIT 3. POST AUDIT 4. CONCURRENT AUDIT 7. RESIDENT AUDIT 5. SPECIAL AUDIT 6. EXTERNAL AUDIT

OTHER TYPES: SOCIAL AUDIT, ENERGY AUDIT, QUALITY AUDIT, MANAGERIAL STYLE AUDIT, SECRETARIAL AUDIT, HUMAN RESOURCES AUDIT, ENVIRONMENTAL AUDIT, MARKETING AUDIT, ETC

CATEGORIES OF AUDIT OBJECTIONS

01. VARIATION IN ACCOUNT FIGURES 02. FUNDS DIVERSTION/DIVERSION OF GRANTS 03. NON-COLLECTION OF DUES 04. NON-UTILISATION OF ALLOCATED AMOUNTS 05. MIS-UTILISATION 06. MISAPPROPRIATIONS 07. ADVANCES PENDING ADJUSTMENT 08. UN-UTILISATION / UNDER-UTILISATION (i.e. unspent amounts) 09. EXCESS UTILISATION 10. IRREGULAR & WASTEFUL EXPENDITURE 11. OFFICE MANAGEMENT RESULTING IN SHORT REALISATION 12. EXCESS & INADMISSIBLE PAYMENTS 13. INSTANCES OF CASES UN-ACCOUNTED FOR (shortage of stores/cash) 14. PURCHASES NON-OBSERVANCE OF RULES 15. FAILURE TO DISCHARGE CERTAIN OBLIGATIONS UNDER THE RULES 16. PROMOTION / APPOINTMENTS CONTRARY TO RULES AND WITHOUT OBSERVING QUALIFICATION NORMS 17. PROCEEDURAL LAPSES 18. RECORDS -- non-maintenance /non-production 19. OTHERS viz., i) NO.OF POSTS -- sanctioned / utilised / variation

CLASSIFICATION of categories of audit objections

1. DIVERSION OF FUNDS /GRANTS : diversion of any specific purpose grant for purposes other than the purpose for which it is meant for 2. UTILISATION OF AMOUNTS
i) Non-utilisation of allocated amounts in full iii) Excess utilisation of funds ii) Mis-utilisation of funds iv) Short utilisation of funds

3. MISAPPROPRIATIONS or EMBEZZLEMENTS b) stores not accounted for a) Cash on receipts and expenditure sides 4. IRREGULAR EXPENDITURE

a) b)
I. II. III. IV.

IRREGULAR AND WASTEFUL EXPENDITURE

EXCESS AND INADMISSIBLE PAYMENTS

5. AMOUNTS COLLECTED (not remitted to respective heads of accounts)

FEES / FINES / RENTS RATES & TAXES PAY BILL RECOVERIES:
1. Subscriptions / loans like G.P.F, APGLI, LIC , PLI 2. G.I.S. 3. Profession Tax 4. Income Tax 5. Other recoveries viz., bank loans, etc. WORKS BILLS : 1. Income Tax 2. Seigniorage charges 3. Sales Tax 4. Other recoveries CONTINGENT BILLS: 1. Income Tax 2. Sales Tax 3. Other recoveries

6. ADVANCES pending adjustment 1. Festival advances / Special Festival Advances 2. Educational Advances 3. Marriage Advances 4. Computer Advance 5. Conveyance Advances motor car/motor cycle/moped/bi-cycle 6. House Building Advances purchase/construction/repair 7. TA/TTA/LTC advances 8.Advance of pay 9.Advances for supply of materials, etc. 7. VIOLATION OF RULES 1) Failure to discharge certain obligations under the rules 2) Promotion / appointments made contrary to rules and without observing qualifications / norms 3) Purchases non-observance of tender / quotation procedures / rules 8. NON-COLLECTION OF DUES Fees, rents, etc.: 9. ACCOUNTING MATTERS 1. Variation in account figures 2. Reconciliation of balances between cash book and pass book not done

10. RECORDS NOT PRODUCED

1. Bank Pass Book / remittance challans / cheque counterfoils 2. Service Books 3. Tender/quotation files 4. Stock registers/stores ledgers 5. Advances registers 6. Other registers / files .. RECORDS FOR AUDIT
1. 3. CASH BOOK + RECORDS BANK PASS BOOK/STATEMENTS 2. ANNUAL ACCOUNT + REGISTERS 4. BANK RECONCILIATION STATEMENT

I. RECEIPTS SIDE
1. BILL BOOKS/RECEIPT BOOKS + REGISTER 3. BANK REMITTANCE CHALLANS 5. CHEQUES/DDs, etc. received + REGISTER 2. DAILY COLLECTION REGISTER 4. GRANT FILES 6. DEMAND REGISTERS, etc

II. EXPENDITURE SIDE

1. PAY BILLS + SALARY ADVANCES 2. TA/TTA/LTC BILLS + ADVANCES 3. CONTINGENT BILLS + STOCK REGISTERS / QUOTATION FILES 4. WORKS BILLS + M.BOOKS / STOCK REGISTERS / TENDER FILES / CONTRACTORS LEDGER 5. ACQUITTANCE REGISTERS 6. ADVANCES REGISTERS 7. PERMANENT ADVANCE REGISTER 8. CHEQUES ISSUED + REGISTER 9. OTHER REGISTERS, if any AUDIT - PROCEDURE 1. VERIFICATION OF ANNUAL ACCOUNT + CLASSIFICATION REGISTERS

2. CASH BOOK + BANK PASS BOOK / challans / cheques + grant files / receipt books / all records of moneys received / paid
3. SALARY BILLS + advances registers 4. TA / LTC / TTA BILLS + advances register 5, CONTINGENT BILLS + STOCK REGISTERS (telephones/stationery/equipment, etc. 6. WORKS BILLS + M.books / estimates / tender files, etc

TYPES OF OBJECTIONS
1. 3. 5. 6. 7. RECOVERY NATURE 2. RECTIFICATION ACTION ORIENTED 4. NON-PRODUCTION SERIOUS IRREGULARITIES -- misappropriation, etc UTILISATION OF FUNDS - excess/under/non/mis NON-FURNISHING OF accounts / reconciliation statements u.cs / bank statements / challans / cheques 8. OTHERS

FEW STEPS for speedy settlement of audit objections

1. GROUPING 2. INITIATION OF ACTION 3. RECOVERY 4. MAINTAINING RECORDS 5. PRODUCTION OF FILES, etc 6. RENDERING accounts / remittance challans /cheques / bank reconciliation statement / bank statements /u.cs / acquittances, etc. 7. FURNISHING OF REPLIES EXPEDITIOUSLY ADJUSTMENT OF ADVANCES 1. LOANS & ADVANCES staff 2. CONTINGENT ADVANCES a) WORKS b) OTHER THAN WORKS excluding advances paid to LIBRARY for JOURNALS c) LIBRARY JOURNALS 3. TA/TTA/LTC/ADVANCE OF PAY

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