Manual of Instructions for Audit of Autonomous Bodies & Companies - Seventh Edition - Audit practices and procedures

Sep 18, 2026

Uploaded by Kurz

Manual of Instructions for Audit of Autonomous Bodies & Companies (Seventh Edition, 2015) issued by the Principal Accountant General (G&SSA), Karnataka, Bangalore, provides structured guidance for conducting outside audit. It updates provisions following instructions received since the VI Edition and integrates relevant amendments and circulars issued by the Comptroller and Auditor General of India. The manual covers constitutional and sector audit functions, legal sections under the CAG DPC Act, account certification, account formats, audit planning and reporting, and key audit types including financial, performance, compliance, and quality management, plus guidance for computerized environments, grants-in-aid, and cost recovery. It also includes institution-specific chapters and annexures such as questionnaires and standard terms.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages440

Reading Time18 h 29 min

AccessFree to download

Preface to the Seventh Edition

Chapter 1: Constitution, Strength and functions of General and Social Sector Audit

Chapter 2: Introduction

Chapter 3: Audit of Autonomous Bodies under Section 14 of CAG’s DPC Act

Chapter 4: Audit under Section 15 of CAG’s DPC Act

Chapter 5: Audit under Section 19 of CAG’s DPC Act

Chapter 6: Audit under Section 20 of CAG’s DPC Act

Chapter 7: Certification of Accounts of Autonomous Bodies/Companies

Chapter 8: Format of Accounts of Autonomous Bodies/Companies

Chapter 9: Audit Planning and Procedures

Chapter 10: Procedure for conduct of Audit & Preparation of Report

Chapter 11: Financial Audit findings and conclusions

Chapter 12: Finalisation of Separate Audit Reports

Chapter 13: Performance Auditing

Chapter 14: Compliance Audit

Chapter 15: Audit Quality Management

Chapter 16: Audit of Autonomous Bodies in Computerised Environment

Chapter 17: Audit of Grant-in-Aid

Chapter 18: Recovery of Cost of Audit

Chapter 19: Other Matters

Annexures

Annexure I: Questionnaire for Systematic and efficient Audit of Institutions under Section 14

For Office Use Only MANUAL OF THE OUTSIDE AUDIT DEPARTMENT (GENERAL SECTOR) MANUAL OF INSTRUCTIONS FOR AUDIT OF AUTONOMOUS BODIES & COMPANIES (Seventh Edition, 2015) ISSUED BY: THE PRINCIPAL ACCOUNTANT GENERAL (G&SSA), KARNATAKA, BANGALORE-560001. PREFACE TO THE SEVENTH EDITION This is the seventh edition of the Manual of Instructions for Audit of Autonomous Bodies coming under this office. Since the issue of the Manual of Instructions for Audit of Autonomous Bodies (VI Edition) during 1993; several instructions were received from the office of the Comptroller and Auditor general of India. Restructuring of the audit offices necessitated the revision of the provisions contained in the VI Edition. A compendium of Manual of Instruction for Audit of Autonomous Bodies has been issued by the office of CAG during the year 2010. Efforts have been made to include all these amendments/circulars/instructions of the CAG in this edition. The instructions in this Manual supplement the manuals issued by the CAG. The Edition includes chapters dealing with the audit of the individual institutions modified/updated with reference to the instructions and decisions applicable to them. Besides, new chapters have also been added in respect of 26 Companies being subjected to audit by this office after restructuring. All the Chapters of VI the Edition of the Central Autonomous Bodies and Autonomous Bodies coming under the Principal Director of Audit (Central), Karnataka & Principal Accountant General (E&RSA) Karnataka respectively are deleted owing to transferring the institutions to the respective jurisdictions. Apart from incorporating guidelines for certifying the accounts of the Autonomous Bodies and Companies, this manual contains audit practices consistent with auditing standards of SAI and INTOSAI. Suggestions for the improvement of the Manual are welcome. Principal Accountant General (G&SSA) Karnataka, Bangalore TABLE OF CONTENTS Chapter No. Topic Page No. 1. Constitution, Strength and functions of General and Social Sector Audit. 1 2. Introduction 6 3. Audit of Autonomous Bodies under Section 14 ofCAG’s DPC Act 13 4. Audit under Section 15 ofCAG’s DPC Act 28 5. Audit under Section 19 ofCAG’s DPC Act 36 6. Audit under Section 20 ofCAG’s DPC Act 46 7. Certification of Accounts of Autonomous Bodies/Companies 56 8. Format of Accounts of Autonomous Bodies/ Companies. 76 9. Audit Planning and Procedures 81 10. Procedure for conduct of Audit & Preparation of Report 95 11. Financial Audit findings and conclusions 107 12. Finalisation of Separate Audit Reports 108 13. Performance Auditing 122 14. Compliance Audit 152 15. Audit Quality Management 156 16. Audit of Autonomous Bodies in Computerised Environment. 169 17. Audit of Grant-in-Aid 178 18. Recovery of Cost of Audit 172 19. Other Matters 180 20. Bangalore Development Authority 187 21. Karnataka Slum Development Board 191 22. Karnataka Housing Board 197 23. Bangalore Water Supply and Sewerage Board 202 24. Karnataka State Legal Service Authority 207 (Including District Legal Service Authority) of the DPC Act ofCAG. 25. Karnataka Urban Water Supply and Drainage Board 214 26. Karnataka State Human Rights Commission 222 27. Karnataka Building and Other Construction Workers Welfare Board 226 28. Karnataka State Agro Corn Products Limited 229 29. Karnataka State Agricultural Produce Processing and Export Corporation Limited 235 30. Karnataka Toagari Abhivridhi Mandali Limited 237 31. Karnataka Compost Development Corporation Limited 239 32. Karnataka Fisheries Development Corporation Limited 242 33. Karnataka Sheep and Wool Development Corporation Limited. 247 34. Dr. Babu Jagjeevan Ram Leather Industries Dev. Corporation Limited, 249 35. Karnataka Rural Infrastructure Development Corporation Limited 258 36. Karnataka State Police Housing Corporation Limited 263 37. Rajiv Gandhi Rural H

FAQs

What is the purpose of the Seventh Edition manual for outside audit?

It serves as an updated compendium of instructions to guide outside audit of autonomous bodies and companies under the office, incorporating relevant CAG amendments, circulars, and instructions since the VI Edition.

Which audit topics are covered beyond basic financial audit?

The manual includes procedures for audit planning and reporting, certification and account formats, and additional audit approaches such as performance auditing, compliance audit, and audit quality management, including audit in computerized environments.

How does the manual structure audits under the CAG’s DPC Act?

It organizes guidance by specific legal provisions, covering audits under Sections 14, 15, 19, and 20 of the CAG’s DPC Act, along with related reporting, certification, and preparation requirements.

Sep 18, 2026

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