Public Section Preview
Quick Revision Table
| Concept | Key Detail |
|---|---|
| Audit origin | Latin audire = "to hear"; accounts read aloud historically |
| Primary objective | Express opinion on TRUE AND FAIR view of financial statements |
| Secondary objectives | Detect errors, detect fraud, verify compliance |
| Elements of auditing (IAASB) | 3-party relationship, subject matter, criteria, evidence, report |
| Audit programme | Written plan — what to audit, how, by whom, by when |
| Social Audit mandate | MGNREGA Section 17 — Gram Sabha every 6 months |
| Social Audit Unit Rajasthan | RSAU, Jaipur — state-level independent body |
| Performance Audit (3 E's) | Economy + Efficiency + Effectiveness |
| Economy | Minimum cost for required quality input |
| Efficiency | Maximum output for given inputs |
| Effectiveness | Whether intended outcomes/goals achieved |
| Efficiency Audit | Only input-output ratio (subset of performance audit) |
| CAG Article | Article 148 of Constitution |
| CAG tenure | 6 years or age 65, whichever is earlier |
| CAG removal | Like Supreme Court Judge — 2/3rd Parliament majority |
| CAG salary | Charged to Consolidated Fund — ensures independence |
| Current CAG | Girish Chandra Murmu (appointed August 2020) |
| PAC | Public Accounts Committee — examines CAG reports in Parliament |
| ZBB introduced | Peter Pyhrr, Texas Instruments, USA, 1969 |
| ZBB in India | Rajasthan (1987) first significant adopter |
| ZBB key feature | Zero as base; every expenditure justified from scratch |
| Performance Budgeting | Input→Output→Outcome; India from 1968-69 (ARC rec.) |
| Outcome Budget | Central Govt from 2005-06 |