Chapter 2

duties and responsibilities of the inspecting officers for the inspection work

2.1 items of work requiring personal attention of the inspecting officer

The responsibility of the inspecting officer for the inspection work is defined in paragraph
668 and 689 of the audit manual. He should see that the work done by himself and has staff is
carried out in accordance with the rules. The important item of work to which the Inspector
inspecting officer should devote his personal attention as listed in annexure of chapter 32 of
audit manual are not intended in any be exhausted. He is at liberty to examine points in
addition which he may consider necessary. t should, however, be clearly understood that the
introduction of this list does not in any way diminish his responsibility for the supervision of the
inspection as a whole . In addition, he may also do the following items of miscellaneous nature
personally.

2.1.1 Review of the register of Divisional Accounts Officer audit objections

1 The inspecting officer should personally sCRUTNIZEthe register of Divisional Accounts

Officer audit objections, which he is required to maintain inform ATC -6 under article 226 of the
audit code and record separate note( not to be included in the Inspection Report) stating
whether or not any objection was taken in the register and if so, whether or not this was of any
real value.( drawing Section Officer should attacks of the Inspection Report and extract from the
register including copy of his remarks in column 6 for the information and approval of the
Director General where extract has not already been sent to audit office).

2 if the inspecting officer takes any point in his report from his register, he should
specifically say so in his report.

3 the inspecting officer should also keep the entries in the register into consideration while
reporting on the work of Divisional Accounts Officer.

4 Review of The inspection notes of the superintending engineer the Divisional Accounts
Officer and the Divisional officer.

5 review of the irregularities noticed in previous Inspection Report which remain

unremedied.
6 Of the extent to which instructions and orders previously issued and noted for
compliance are being observed in practice.

WM(P)4-1/2540 Dated 21/11/1962

2.2 Checking of cash book

 Under article 149 to 15 of audit code, the primary objects of inspection and local audit
are(i) to see that the initial accounts for which the accounts rendered by the departmental
officers are compiled or on Which they are based, are properly maintained in the prescribed
forms and that the financial rules and orders are being observed and (ii)To test the the degree of
care exercise by the departmental authorities responsible for keeping of accounts over the
accuracy of original records.The local audit is not confined nearly to seeing whether The initial
accounts are maintained in proper form or whether the financial rules are properly observed but
the test audit of accounts is to be conducted in sufficient detail to verify the accuracy and
completeness of the accouns according to the prescribed rules for the audit of Expenditure and
receipts of the Federal and provincial government. The Distorted is applied to such accounts,
vouchers,etc. which are not audited by the central audit or as cannot be checked adequately
except at local audit.It has come to notice that these instructions are usually not fully observed
while conducting the local Audit and inspection, It has been observed that the audit parties
usually focus their attention for material for draft paras or other serious irregularities without
giving any importance to the basics prescribed for the audit of the accounts, documents . For
example cash book, which is important record, was not completely checked and reconciled with
the bank / treasury accounts to detect that the bank statement work being received regularly
and monthly reconciliation statement were prepared.Taking advantage of this position, the
cashier embezzled huge amount by enhancing the amount of the foils of the cheque while the
amount counterfoil corresponded with those shown in vouchers and cash book.

The Audit parties should therefore, invariably reply usual audit checks to all the accounts
records subjected to audit and the test check should be complete one. The accounts for the
audit period should however, be reviewed intelligently to find out serious irregularities and other
material for Draft Paras.

Auditor General circular memo number 1878 - Pro / 31- 74 dated 7/9 /1976

2.3 Examination of direct cash receipts

The Direct cash receipts of each division appearing in the Divisional and sub divisional
cash book bust during inspection, be specially examined by the inspecting officer and compared
with the total of receipts during the month Shown in Form PWA 42 / 80( monthly account). The
the examination should be made in respect of transactions for as many month as is possible for
him to do, the particular months to be examined being chosen at his discretion. A not of the
months checked in his respect should be made in the Inspection Report. The transactions of
the the months selected for test audit must invariably be checked..

2.3.1 Check the payments made into post office

all payments showed in the cash book to have been made into post office should be
checked with the post office saving bank passbooks.
2.3.2 Review of work selected for examination
A review of each work selected for examination should be proceeded with one of the following
line and inspecting officer and the Divisional Accounts Officer should pay particular attention to
it.

2.3.3 Non schedule rates

The Non-Scheduled Items are supported with proper analysis of Rates approved by the
competent authority.

2.3.4 Notice Inviting Tender

Notice inviting tender should scrutinized and the item put to tender be compared with the
items in the estimate. It that the work has not been split without sanction of the competent
authority.The publicity of the tender notice and the time allowed to tender should be examined