1. What is an audit according to the Audit Act 2019?
Answer:
Auditing is the independent, fair, and objective examination, checking, evaluation, and analysis of accounts related to financial transactions. The Audit Act 2019 defines it as an examination of accounts related to the business of government offices, government-owned bodies, and other specified institutions, with a focus on regularity, economy, efficiency, and effectiveness.
Answer:
Auditing is the independent, fair, and objective examination, checking, evaluation, and analysis of accounts related to financial transactions. The Audit Act 2019 defines it as an examination of accounts related to the business of government offices, government-owned bodies, and other specified institutions, with a focus on regularity, economy, efficiency, and effectiveness.
2. What are the main bases for conducting an audit in Nepal?
Answer:
The main bases for conducting an audit in Nepal include the Constitution of Nepal, the Audit Act, relevant laws, rules, guidelines, norms, agreements, decisions, and policies. Audits are performed based on these to ensure compliance and accountability.
3. What principles guide the auditing process in Nepal?
Answer:
The auditing process in Nepal is guided by the Nepal Government Sector Audit Standards, the basic principles of auditing from the International Organization of Supreme Audit Institutions (INTOSAI), and other best practices. The process includes risk evaluation, sample selection, and conducting tests such as analytical, control, and compliance tests.
4. What are financial irregularities, and how do they relate to corruption?
Answer:
Financial irregularities refer to transactions that do not comply with prevailing laws or are conducted in an unreasonable manner. These often occur due to spending without sufficient evidence. When such irregularities are motivated by personal gain, they fall into the category of corruption, which undermines financial governance.
5. How can irregularities be reduced in financial transactions?
Answer:
To reduce irregularities, officials must strictly implement existing financial laws, rules, and procedures. Enhancing the capacity of human resources involved in auditing and financial management is also crucial.
6. How does auditing promote financial accountability?
Answer:
Auditing promotes financial accountability by providing assurance on the completeness, accuracy, and validity of financial transactions. It ensures that public resources are used efficiently and effectively, as prescribed by the Audit Act 2019.
7. What is the auditor's code of conduct in Nepal?
Answer:
The auditor's code of conduct in Nepal emphasizes integrity, independence, impartiality, confidentiality, and ethical behavior. It is guided by the Lima Declaration of 1977 and the International Auditing Standards (ISA), with additional provisions from the Civil Service Act and Regulations.
8. What is an audit report, and how is it used?
Answer:
An audit report is the document prepared after an audit, detailing the findings. According to Article 294 of the Constitution of Nepal, the annual audit report is submitted to the President, and the provincial report is submitted to the concerned provincial head.
9. What is a follow-up audit?
Answer:
A follow-up audit involves re-testing or re-evaluating previous audits based on evidence and clarifications provided for identified irregularities. It is part of the process to ensure that recommendations from past audits are implemented.
10. What does the audit of propriety involve?
Answer:
The audit of propriety goes beyond compliance checks, focusing on whether the decisions and activities of an executive body align with financial discipline, policy rules, and the public interest.
11. What is a performance audit?
Answer:
A performance audit assesses whether resources are managed and used effectively, efficiently, and economically. It evaluates whether the maximum output has been achieved with the resources used and if the set objectives have been met.
