Financial Audit
Financial Audit
Financial Audit is our statutory responsibility. We are the auditor for the Ministry of Shipping (Finance and Appropriation Accounts) and sole auditor for ABs and have to conduct supplementary audit for PSUs. Therefore, we have set aside 27per cent of resources (2108 mandays) for this statutory function. Number of mandays required for financial audit are based on volume of work and past experience.
The Financial Statements of the Companies under the audit jurisdiction of this office are prepared either under Generally Accepted Accounting Principles (GAAP) or under IND AS. In respect of Companies adopting GAAP, the checklist for Accounting Standards has been prescribed by Hqrs office (vide Hqrs letter dated 14 March 2007) , which is being invariably ensured by the Audit Teams during the Financial Audit. Similarly in respect of Companies adopting IND AS, Hqrs prescribed the Checklist for IND AS (Hqrs letter dated 27 May 2019) which is circulated to all the audit teams. During the course of financial audit of the Companies adopting IND AS, the Checklist for IND AS is checked by the LAPs and compliance reported. In case where the accounts are proposed for Non Review, a system is in place wherein the financial statements are reviewed in the Office. Differences noticed under major heads in the Balance Sheet and Profit & Loss Accounts are documented. In case of significant differences, clarifications are obtained from the audit entity. Based on the merit, Non Review certificate is issued or audit is taken up even though the company was initially selected for Non Review. Further, it is also ensured during Financial Audit, that the observations raised by way of Management letters to the audit entities during the previous year are duly addressed/ complied with by the entities.
Consequent upon restructuring of Central and State Audit Offices, (vide Hqrs notification dated 9.3.2020), the Ministry of Shipping and 4 Departments under Ministry of Shipping were transferred to this office from Office of PDA (ESM) and Office of DG (Central).