The general principles and rules of audit of expenditure laid down in paragraphs 16 to 55 and 582 to 590 of MSO (T) Vol. l and chapter XVI of RAM should be observed.
The audit of expenditure on works and of the working expenses (other than Establishment) is conducted by the Expenditure audit section in headquarters office, unit audit offices attached to CLW, DLW & M. Rly. The Expenditure audit section at headquarters is also responsible for exercising necessary checks on the records maintained in the head quarters accounts office in connection with the investments of the Railway in the Road Transport Corporations, Railway consumers co-operative societies etc.
The works audit generally comprises of audit of (i) Sanctions (ii) Estimates (iii) Completion Reports (iv) Tenders and Contracts (v) Contractors’ Bills (vi) Contractors’ Ledgers (vii) Measurement Books (viii) Suppliers’ Bills for supplies of materials (ix) Labor Pay Sheets (x) Journal Vouchers (xi) Works Registers (xii) Suspense Registers (xiii) Land Registers etc. Other important items of audit dealt with under ‘Expenditure audit’ are audit of (i) Law charges (ii) Accounts of private and assisted sidings (iii) Bills for rent of telegraph wires (iv) Payments to local bodies, etc.