Audit of Government Companies
Published Date: 26-Jun-2017 12:46 PM
For every government entity, accountability to the public is essential. Government audits bring to the limelight the unique problems and constraints faced by the public sector. This is why several companies have a dedicated audit service line to provide specialized audit services to the public sector.
Every year, the government spends millions of rupees in the form of grants, property, interest subsidies, loans, insurance, cooperative agreements, loan guarantees, food commodities and other non-cash assistance which are subject to compliance audit requirements. Auditing provides an independent and objective assessment of costs, stewardship, and performance of programs and operations.
Government audits include compliance audits (also known as single audits), social audits, internal audits as well as financial statement audits on entities like states, local governments, institutions, not-for-profits, and for-profits. In India, Government Audit is performed by Independent Constitutional Authority, i.e., Comptroller and Auditor General of India (C& AG) who is appointed by the President of India.
Organizations Subject to Government Audit
- About 1200 Public Commercial Enterprises controlled by the Union or State Governments
- About 400 non-commercial autonomous bodies that are owned or controlled by the Union or State Government
- Over 4400 authorities that are substantially financed by Union or State Revenues
Comprehensive Audit of Public Enterprises
There are various areas covered under comprehensive audit which vary from enterprise to enterprise depending on its nature, objectives, and operations. These include but are not limited to investment decisions, organizational effectiveness, capacity utilization, etc.
Some of the problems examined are:
- Comparison of the project's overall cost of capital with the approved planned costs
- Production outputs concerning underutilisation of the installed capacity
- Systems of project formulation and implementation
- Expected rate of return
- Cost control measures
- Research and development programs
- System of repairs and maintenance
- Adequate purchase policies
Audit Services at MS Associates in Bangalore
Through our consistent audit procedures and state-of-the-art audit tools, we provide our clients in the public sector with high-quality audit services. This holds them accountable for their use of public resources and helps them manage those resources in compliance with laws and regulations. They can easily operate programs that achieve their objectives; and provide services more efficiently, effectively, economically as well as ethically.
Providing an unmatched level of client-service commitment is on the top of the plate with a comprehensive public financial management experience, strong technical and regulatory expertise, and competitive fee structure.
If you are a government company in Bangalore and need assistance with advisory and audit services, click here