Section 8: Matters to be Audited

The Auditor General shall, upon having regard, inter alia, to the regularity, economy, efficiency, effectiveness and propriety, audit the following matters, as required:

(a) Whether or not the amounts appropriated in the concerned heads and sub-heads by the Appropriation Act and other Acts for services and activities have been expended for the specified purposes of such specified services or activities within the limit of the same heads and sub-heads,

(b) Whether or not the accounts have been maintained in the prescribed forms and reporting has been made within the specified time,

(c) Whether or not any Constitutional Body, Ministry, Department and central level office equivalent thereto and a Provincial Ministry and Province level other office have maintained central accounting of all financial transactions, including appropriation, revenues and deposits of their respective sub-ordinate offices and prepared central statements, and if so prepared, whether or not such statements truly reflect the financial transactions,

(d) Whether or not the accounting of the Federal Consolidated Fund, Provincial Consolidated Fund, Local Consolidated Fund, Federal Contingent Fund, Provincial Contingent Fund and other governmental funds has become realistic,

(e) Whether or not the concerned governmental body has sanctioned the budget in time,

(f) Whether or not financial statements truly and correctly reflect the financial transaction of the period mentioned therein,

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

(h) Whether or not physical progress has been made according to the accounting or reporting,

(i) Whether or not approval of the authority competent to make expenditure has been obtained,

(k) Whether or not the liability created has been paid in time,

(l) Whether or not the available resources, means, and assets, including cash and in-kind, have been properly utilised,

(m) Whether or not records of government properties have been maintained in accordance with the prevailing law,

(n) Whether or not proper protection and maintenance of governmental properties has been made in such a way to prevent loss and damage thereto,

(o) Whether or not the arrangement for maintaining accounts of governmental debts and investment, the principal, interest and dividends to be received therefrom or to be owed or paid thereon and paid up is adequate, or accounting has been made accordingly, and the accounts maintained have been accurate,

(p) Whether or not adequate legal provisions have been made to prevent misuse in making expenditures, the related provision for regulation and control is adequate, and these matters have been complied with,

(q) Whether or not effective provisions of the internal control system have been made, and such provisions have been followed,

(r) Whether or not an internal audit has been performed in a satisfactory manner, and if so performed, the report has been implemented,

(s) Whether or not the amounts to be credited to revenue and government funds have been determined, recovered, credited and accounted for in accordance with law, and effort has been made to control revenue leakage,

(t) Whether or not the prevailing law on deposit is adequate and has been complied with,

(u) Whether or not the accounts of income and expenditure of industrial and business services, and their balance of cash and kind, and the provisions relating to their financial transactions and law related thereto are adequate, and if so, they have been complied with,

(v) Whether or not the organisation, management and allocation of business of the office are sufficient and proper, and the office has been operated and managed accordingly,

(w) Whether or not any function is being unnecessarily performed in duplication by various employees or agencies or any function required to be performed is being omitted, or there has been effective provision in place for performing or causing to be performed the office business in the specified time,

(x) Whether or not the grounds for specifying the achievements of the organisation and program are clear, progress has been made within the specified time according to the program, and the quality and quantity of the business conform to the standards,

(y) Whether or not the objective and policy of the Office are explicit, and the plan, budget and program have been formulated in conformity with the specified objective and policy, and implementation has been made accordingly,

(z) Whether or not the program has been implemented within the limits of approved the  cost estimate, expenditure has been made in a proper manner by analysing cost and achievement in making expenditure, and the returns have been achieved in comparison to the cost,

(aa) Whether or not the provisions for maintaining records of target, progress and cost are adequate and reliable,

(bb) Whether or not monitoring has been made in consonance with the requirement of monitoring under the prevailing law, and the monitoring report has been implemented,

(cc) Whether or not effort has been made to make the financial transactions, records and reporting provision information technology-based,

(dd) Whether or not the utilisation and mobilisation of the revenue, grant and royalty distributed between the Government of Nepal, Provincial Government and Local Level in accordance with the prevailing law have been effective,

(ee) Whether or not reimbursements have been taken in time,

(ff) Whether or not the records of irregular amounts and settlement thereof have been updated and efforts have been made to settle irregularities.