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Our Mandate

Audit Mandate

Public audit seeks to promote and facilitate accountability, transparency and good governance through regularity and propriety in use of public funds; development of sound financial management; conduct of administrative activities and operations in accountable and transparent manner; execution of programmes and policies in economic, efficient and economic manner by public sector entities and public authorities including those in charge of governance. An important objective is to communicate the results of audit with stakeholders including legislative oversight bodies, public authorities, general public, etc., through publicly available audit reports.

This office is part of the Office of the Comptroller and Auditor General (CAG) of India, the Supreme Audit Institution of India, and is the highest audit office in the State. It undertakes the audit as per the mandate of the CAG of India as a constitutional office provided under the Constitution of India (Articles 148-151) and the provisions of the CAG (Duties, Powers and Conditions of Service) Act 1971. The audit reports are included in the Reports of the CAG of India of Jammu & Kashmir.

As per the mandate, the office undertakes three types of audit –

a) Financial Attest Audit relating to the financial statements/annual accounts of the State Government and the public sector undertakings (supplementary audit in addition to the audit of the statutory auditor of the entity); certification of the statement of expenditure and receipts, etc., of the Centrally Sponsored Schemes (CSS) / Externally Aided Projects (EAPs); Separate Audit Reports (SAR) of the autonomous body’s accounts;

b) Compliance Audit relating to auditees’ compliance with relevant and applicable laws, rules, regulations, scheme and policy guideline, authorities including budgetary authorities, manuals, government orders, policies, etc., in their administration, management and operation.

c) Performance Audit relating to auditees’ performance in terms of economy, efficiency and effectiveness in administering, managing and implementing public policies and objectives, service delivery, schemes, projects, etc.

In addition, the office also undertakes audit against subjects to be included in the performance audit reports of the CAG of India as All India Reviews; provides Technical Guidance and Supervisions (TGS) to the State’s Directorate of Local Fund Audit by undertaking audit of local bodies; provides audit services as and when request is received from the government agencies for special audit.

Financial attest audit and compliance audit focuses on legality and regularity in transactions, accounts and financial management. It examines to what extent the prescribed financial, accounting and administrative rules/procedures and applicable authorities, laws, regulations, guidelines and orders have been followed or complied with and in the process highlights cases of loss, waste, misuse, fraud and defalcation of public resources.

Performance Audit evaluates performance of audit entities vis-à-vis implementation and management of policies, programmes, schemes, projects; delivery of services, utilities, products etc., from the perspective of principles of economy, efficiency and effectiveness.

The scope of audit includes –

  •         The mandate of CAG includes audit of receipts and expenditure from the Consolidated         Fund of India/state/UTs.
  •         Transactions relating to Contingency Funds and Public Accounts.
  •         Trading manufacturing, profit and loss accounts and balance sheets, and other subsidiary      accounts kept in any Government Department.
  •         Accounts of stores and stock kept in Government offices or departments.
  •         Government companies as per the provisions of the Companies Act, (1956)/2013.
  •         Corporations established by or under laws made by legislature.
  •         Authorities and bodies substantially financed from the Consolidated Funds.
  •         Anybody or authority even though not substantially financed from Consolidated Fund,         the audit of which may be entrusted.
  •         Grants & loans given by Government to Bodies and Authorities for specific purposes.
  •        Panchayati Raj Institutions & Urban Local Bodies.

The audit mandate also provides for the periodic inspection of records and accounts of Government Departments to supplement the audit of vouchers and sanctions that are with the account offices.

Article 151, authorizes the CAG to submit his report relating to the accounts of Union or State to the President or Governor of the state, as the case may be, who shall cause them to be laid before each House of Parliament or Legislature of the state.

The audit of accounts being in Union list of the Constitution of India, the Office of the AG J&K was part of state Government’s own establishment till 30th April 1958 on account of special Constitutional arrangement of the state as embodied in Article 370 of the Constitution of India, However, on 1st May 1958, the jurisdiction of CAG was extended to the state as well and this office as part of the establishment of CAG has been performing the duties and exercising the powers in relation to the accounts of the state in accordance with the CAG’s mandate as above.