A TRAINING SESSION

 On
 Works Audit
 By
 Shamsul Haq Audit officer
 Of
 Dy Auditor General (North)
Stages in audit proces

Stages in audit
 Planning

 Execution

 Evaluation

 ML for Reporting

 Issuance of Management Letter

Audit cycle
Audit process generally follows a standard Audit Cycle:
Pre audit & Post audit
 Provision of funds
 Procurements
 Claims of bidders
 Preparation of Bill
 Pre audit of bill
 Clearance for payment
 Bill after payment become vouched account
 Post audit of vouched account
Audit cycle
Post Audit process generally follows a standard
Audit Cycle:
 Audit Plan (Yearly)
 Steps in preparation of annual Audit Plan
 Evaluation of resources
 Selection of entities ( 30 PAOs & 4500 DDOs)
 Selection of formations (maximum up to 200)
 Approval from AGP
 Audit on request
Audit cycle
Audit process generally follows a standard Audit Cycle:
 Field audit planning
 Detailed activity and resource planning
 Formation of Field Audit Team
 Assignment of Fieldwork
 Time frame for completion
 Proper Supervision
 Results evaluation
 Write ups & discussion with management
 On spot response of management
 Reporting to PAOs
 Review Departmental Accounts Committee
Audit cycle
Audit process generally follows a standard Audit
Cycle:
 Recommendations of DAC
 Finalization of Audit Report
 Approval from AGP
 Presentation to president/ Governor
 Placement before parliament
 Review by Public Accounts Committee
 Follow up by Audit
Audit of a DDO
 Gathering information before visit
 Visit of office & introduction

 Meeting with concerned

 Requisitions

 Scrutiny

 Verification

 Write ups
Steps in writing an observation
 Title of observation
 Criteria
 (rule violated)
 Condition
 (gist of finding of auditor but comprehensive covering all aspects)
 Cause
 (reason for irregularity/ weaknesses of controls)
 Impact/ affect
 (implication of the irregularity)
 Recommendation(s)
 (action suggested by auditor)
Types of observation
 Irregular payments
 (violation of rules & procedure)

 Overpayments

 (over & above the standards)

Types of observation
 Excess payments
 (in excess of the actual)

 Excess expenditure

 (in excess of the standards)

Types of observation
 Unauthorized payments
 (without approval/ authorization/ sanction)
 Unauthorized expenditure
 (without the standards)
 Losses, Frauds & embezzlements
 (collaboration/ negligence over exercising powers),
 Recoverable,
Language of report
 Should be easy for entity management to read & understand
 It is to be read by Auditors, management in audited
organization, members in DAC, Parliamentarians in PAC
therefore should be with minimal technical terminologies;
 The contents should focus only on material and significant
matters;
 Conclusions and recommendations must be comprehensive and
useful
 Should be fully supported by reliable and sufficient evidences
 Focus be on identification of;
non adherence to provision of rules, weaknesses in internal and
financial controls and lack of interest of management
 Thanks

 Any question

 Thanks once again