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The famous writer Mr. E. L. Normanton states in his Book titled "The Accountability and Audit of Government" states "without audit, no accountability, without accountability, no control". The main object of commercial audit is to present before the proprietor or proprietors of the business an accurate statement of the position of affairs together with a Profit and Loss Account showing how this position has been reached. In the case of companies the duty of an auditor is mainly in the interest of the shareholders, who are practically sleeping partners in the business. On the other hand the Government is responsible to spend the money which is collected from the public in shape of Taxes and Levies. As such the Government Audit is rather more important than that of the commercial audit and was recognised during pre-independence era with the introduction of constitutional Reforms of 1919. The necessity and importance of Government Audit has increased day by day as the Governments have involved in more and more activities by using the public funds.
Keywords: government audit, public funds, taxes
Audit
Broadly and technically, Audit is an examination of accounting records undertaken with a view to ascertain whether they correctly and completely reflect the transactions to which they purport to relate. These accounting record are prepared and compiled by the authorities through whom the financial transactions occur and the responsibility/delegation for receiving the Government Funds and incur expenditure has been assigned (viz. Treasuries, various Departmental offices, Pay and Accounts Wings etc.). The difference between accounting and auditing is required to be understood clearly. Thought the accounts are prepared by a professional accountant; accuracy thereof cannot be guarantee as, he would be acting simply as an expert accountant and not in any way as an auditor. He would not check the books himself.
Audit is quite distinct and apart from accountancy, an audit does not entail the preparation of the accounts at all but deals with something much wider, namely the examination of Income and Expenditure Accounts prepared by others, together with the books, accounts and vouchers relating thereto in such a manner that the auditor may be able to satisfy himself and honestly report that, in his opinion, such Income and Expenditure Account is properly...