Functional Areas

The Directorate as a whole carries out the audit of three main areas of Government:


(a) The audit of a wide range of Government Offices such as ministries, directorates, hospitals, educational institutions and autonomous and local bodies. (The audit of government offices such as Post, T&T, Works, Roads and Highways, Railway, Public Health Engineering and Defense are covered by other Audit Directorates);

(b) Local bodies; and

(c) Government revenue particularly taxes such as income tax, customs duties and VAT, etc.

Scope and Objectives of Local Audit

  There is a wide range of local audits which has been categorized into 4 main groups, based on the different duties, powers and audit needs of each group. These are:


(a) Government Offices: these include ministries, directorates and other offices whose prime functions are to help formulate of administer/ implement government policy and decisions:

(b) Government Service Units: these include hospitals, schools, colleges, sport and cultural bodies whose main function is to provide a service based on government policy; and

(c) Autonomous & Local Bodies: these include city corporations, municipalities, universities and other authorities. This group provides a mixture of administrative functions and service provision. They have autonomous powers which need to be taken into account at audit.

(d) Internal Resource division, Ministry of Finances; tax, customs, VAT, National Saving Bureau, ADC (Revenue), ADC (LA)


             Overall there are approximately 12,000 individual offices or units which, potentially, come under the scope of local audit. Local audit must ensure sufficient audit coverage of the above 3 categories of audit over time, base on risk, materiality and audit knowledge rather than attempt of visit all units.


             The broad aim of Local and Revenue Audit is to safeguard the interest of the state and to promote transparency and accountability along with sound financial management practices through an independent audit of Government Offices, Government Service Units and Autonomous and Local Bodies, as detailed in paragraph above.


              To fulfill this broad aim, local and Revenue audit will include a wide range of regularity and value for money (performance audit) work. The audit work at all categories of local audit will include but not be limited to:


(a) an examination of the arrangements for securing economy, efficiency and effectiveness for money in the use of its resources;

(b) the adequacy of financial management systems;

(c) the adequacy of the arrangements for preventing and detecting fraud and corruption and the internal control framework generally;

(d) examining the custody and use of assets including equipment, stocks and stores;

(e) ensuring that appropriate action has been taken on irregularities, improprieties and wastage in the use of public resources;

(f) the adequacy of arrangements for ensuring the legality of transactions having financial consequences; and

(g) ascertaining whether there have been deviations from established rules and regulations.

                 It is not the function of Local Audit to give an opinion on the accounts of the audited outside Government Offices. Nonetheless auditors should ensure that significant internal control weaknesses, errors or omissions which may affect the Government accounts should be notified to the Directorate of Civil Audit.