Directorate of Audit
Function and Services
The main function of Directorate of Audit, which is divided into two units namely Internal Audit and Local Fund Accounts, is to check the initial accounts of various government departments, institutions receiving grants - in-aid from the government, companies under liquidation, gram panchayats and autonomous organizations under the Government of National Capital Territory of Delhi.
The Directorate of Audit is also responsible for conducting special audits as and when requested by the concerned departments and directed by the higher authorities.
Internal Audit test check the accuracy and completeness of the accounts and ensures that all revenue receipts collected are brought to account under proper head, that all the expenditures and disbursements are duly authorized, vouched and correctly classified and that the final accounts represent a complete and true statement of financial transaction it purports to exhibit.
Chapter 12 of Civil Accounts Manual issued by Govt. of India, Ministry of Finance provides for setting up of an efficient internal audit organization to ensure both accuracy in accounts and efficiency in the operation of the accounts set up. The scope and function of internal audit organization depends on the nature of work and number of subordinate offices, the strength of establishment, nature and quantum of expenditure, etc. The organization shall check the initial accounts maintained in executive offices with a view to ascertain as to how far they are following the rules in financial matters. The internal audit should, inter alia ,cover checking of all accounts records including those relating to fund accounts, loan and advances and records of physical verification of stores, equipments, tools and plants, etc.
The duties of Internal Inspection Wing, inter-alia, include the following:-
- Study of the accounting procedures adopted by the Department with a view to ensure that they are correct, adequate and free from any defects or lacunae.
- Keeping watch over the implementation of the prescribed procedure and the orders issued from time to time.
- Periodical review of all account records.
- Perusation/Settlement of objections taken in test audit notes issued by Statutory Audit.
- To examine and report on points or irregularities brought to its notice.
- Scrutiny of purchase and stores procedures in the offices inspected, so as to ensure that they are free from any defects or lacunae.
- Checking of procedures with regard to disposal of assets to ensure that adequate procedure exists for scrapping/condemning and the same is followed.
- Scrutiny of General Office Management procedure adopted by the Head of Office locally, where there have been financial and accounting implications, so as to suggest tightening up of administrative and financial control, savings in expenditure and streamlining of accounts.