Audit Act, 2019

8. Subjects of Audit: The Auditor General shall, considering regularity, economy, efficiency, effectiveness and propriety, conduct an audit of the following subjects as necessary:-

(a) Whether the amounts approved under designated headings and sub-headings for expenditure on services and works pursuant to the Appropriation Act and other Acts have been spent for the specified purpose within the limits of the same heading and sub-heading or not,

(b) Whether the accounts of transactions have been kept in the prescribed format and reports have been submitted within the specified time or not,

(c) Whether the Constitutional bodies, Ministries, Departments and offices at the central level equivalent thereto, and the Ministries of the Province and other offices at the provincial level have maintained central accounts of all financial transactions including appropriation, revenue, deposits of their subordinate offices and prepared central statements or not, and if prepared, whether they depict the true picture of the financial transactions or not,

(d) Whether the accounts of the Federal Consolidated Fund, Provincial Consolidated Fund, Local Consolidated Fund, Federal Contingency Fund, Provincial Contingency Fund and other government funds are accurate or not,

(e) Whether the concerned government body has released the budget on time or not,

(f) Whether the financial statements present a correct and true picture of the financial transactions for the period mentioned therein or not,

(g) Whether there is sufficient evidence to support the items of income or expenditure or not,

(h) Whether physical progress has been made according to the accounts or reports or not,

(i) Whether the expenditure has been authorised by the competent authority or not,

(j) Whether the liability created has been paid on time or not,

(k) Whether the available resources, means and assets, including cash and goods, have been properly utilized or not,

(l) Whether records of government property have been kept according to the prevailing law or not,

(m) Whether government property has been properly preserved and maintained to prevent loss or damage or not,

(n) Whether the arrangements for maintaining accounts of government loans and investments and the principal, interest, dividends etc. receivable or payable and actually received or paid therefrom are adequate or not, or whether accounts have been kept accordingly or not, and whether the accounts kept are accurate or not,

(o) Whether there are adequate legal provisions to prevent misuse while spending, whether the related regulatory and control arrangements are adequate or not, and whether those provisions have been followed or not,

(p) Whether there is an effective system of internal control or not, and whether it has been followed or not,

(q) Whether internal audit has been conducted satisfactorily or not, and if conducted, whether the report has been implemented or not,

(r) Whether the amounts due to be deposited into the revenue and government fund have been assessed, collected, deposited and accounted for according to law or not, and whether efforts have been made to control revenue leakage or not,

(s) Whether the prevailing laws on deposits are adequate or not, and whether they have been complied with or not,

(t) Whether the accounts of income and expenditure of industrial and commercial services, the arrangements relating to its goods, cash balances and financial transactions and related laws are adequate or not, and whether they have been complied with or not,

(u) Whether the organisation, management and division of work of the office are adequate and appropriate or not, and whether the office has been operated and managed accordingly or not,

(v) Whether any work has been unnecessarily duplicated by different employees or bodies, or any work that ought to be done has been omitted, or whether there is an effective arrangement for getting the work of the office done within the specified time or not,

(w) Whether the basis for determining the achievements of the organisation and program is clear or not, whether progress has been made within the stipulated time according to the program or not, and whether the quality and quantity of work are according to standards or not,

(x) Whether the objectives and policies of the office are clear or not, and whether plans, budgets and programs have been formulated in line with the specified objectives and policies or not, and implemented accordingly or not,

(y) Whether programs have been operated within the limit of the approved cost or not, whether expenditure has been made properly by analysing cost and achievement or not, and whether returns have been obtained compared to the cost or not,

(z) Whether the arrangements for keeping records of targets, progress and costs are adequate and reliable or not,

(aa) Whether monitoring has been done according to the provisions made by the prevailing law or not, and whether the reports obtained from monitoring have been implemented or not,

(bb) Whether efforts have been made to make the financial transactions, records and reporting system based on information technology or not,

(cc) Whether the use and mobilization of revenue, grants and royalties distributed according to the prevailing law to the Government of Nepal, Provincial Government or Local Level is effective or not,

(dd) Whether the work of claiming reimbursement has been done on time or not,

(ee) Whether the records of irregularities and their settlement have been kept updated or not, and whether efforts have been made to settle irregularities or not.