CAG Calls for Functional Autonomy for Internal auditors

New Delhi, May 4 (UNI) Seeking functional autonomy for internal auditors to various Ministries and Government Departments, Comptroller and Auditor General of India V N Kaul today hoped the Government would soon undertake reforms in its internal audit.

Delivering the keynote address at a day-long seminar on internal audit here, CAG Kaul disclosed that the suggestion was part of six recommendations made by a Task Force -- constituted by the CAG -- to strengthen internal audit in the Government.

The task force had submitted its report to the Finance Ministry in November last year, he said.

While seeking independence for internal auditors from the administrative setup, the CAG opined that they should directly report to the Secretary in the Ministry or to the heads of various departments and agencies.

The other measures include widening of the mandate of internal audit to suggest steps to improve efficiency; formulation of risk based audit plan; adoption of international benchmark auditing standards; computerisation to detect fraud and corruption; and implementation of auditors' suggestions.

Speaking on the occasion, Secretary (Defence Finance) VK Misra pointed to the need to review the periodic internal audit certificate and reduce the large expenditure at the level of service headquarters and lower formations.

Secretary Misra said this was necessary to make optimum use of funds for modernisation of the Defence Forces and maintain high serviceability levels when there were constraints of reducing fiscal deficit in the Union Budget.

In his introductory remarks, Controller General of Defence Accounts Jnan Prakash observed that of the Rs 97,000 crore Defence Budget for the current financial year, the capital outlay for modernisation and acquisition of weaponry and other equipment stood at nearly 44 per cent while there was need to make proper utilisation of the huge revenue expenditure.

Senior officers of the Indian Defence Accounts Service, Indian Civil Accounts Service, Indian Audit and Accounts Service and Indian Railways Accounts Service attended the deliberations.

UNI