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Unit 14: Audit of a Partnership Accounts and Government Company

14.3.5 Performance Audit Notes

Performance audit to see that Government programmes have achieved the desired objectives at
lowest cost and given the intended benefits. For a complete list of Performance Appraisals since
1983.

14.3.6 Regularity Audit (Financial)

In regularity (financial) audit and in other types of audit when applicable, auditors should analyze
the financial statements to establish whether acceptable accounting standards for financial
reporting and disclosure are complied with. Analysis of financial statements should be performed
to such a degree that a rational basis is obtained to express an opinion on financial statements.

14.3.7 Action on Audit Reports

The scrutiny of the Annual Accounts and the Audit Reports thereon by the Parliament as a whole
would be an arduous task, considering their diverse and specialised nature, besides imposing
excessive demands on the limited time available to the Parliament for discussion of issues of
national importance. Therefore the Parliament and the State Legislatures have, for this purpose,
constituted specialized Committees like the Public Accounts Committee (PAC) and the
Committee on Public Undertakings (COPU), to which these audit Reports and Annual Accounts
automatically stand referred.

14.3.8 Public Accounts Committee

The Public Accounts Committee satisfies itself:-
1. that the moneys (shown in the accounts) were disbursed legally on the service or purpose to
which they were applied;
2. that the expenditure was authorized;
3. that reappropriation (i.e. distribution of funds).

It is also the duty of the PAC to examine the statement of accounts of autonomous and
semi-autonomous bodies, the audit of which is conducted by the Comptroller & Auditor-General
either under the directions of the President or by a Statute of Parliament.

14.3.9 Committee on Public Undertakings

The Committee on Public Undertakings exercises the same financial control on the public sector
undertakings as the Public Accounts Committee exercises over the functioning of the Government
Departments. The functions of the Committee are:-
1. To examine the reports and accounts of public undertakings.
2. To examine the reports of the Comptroller & Auditor General on public undertakings.

3. To examine the efficiency of public undertakings and to see whether they are being managed
in accordance with sound business principles and prudent commercial practices.

The examination of public enterprises by the Committee takes the form of comprehensive
appraisal or evaluation of performance of the undertaking. It involves a thorough examination,
including evaluation of the policies, programmes and financial working of the undertaking.

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