The authority for audit is derived from the Constitution of India read with CAG’s DPC Act, 1971

          Consequent to sectoral integration, the audit arrangement of the State Governments in the Indian Audit and Accounts Department has been restructured w.e.f. 01.04.2012.

          The office of the Principal Accountant General (General & Social Sector Audit), Karnataka, Bangalore has been entrusted with the work of auditing the Government Departments falling under the General & Social Sector in Karnataka.  The office also audits the Local Bodies including Panchayat Raj Institutions and Urban Local Bodies and Autonomous Bodies under the Administrative control of the Government of Karnataka.

For detailed list of Departments click below:

Audit, Audit Plan and Audit Process:


The office conducts Audit of three types viz.

·        Financial Attest Audit
·        Compliance/Regularity Audit
·        Performance Audit

          In Financial Attest Audit, the office expresses an opinion in the form of certificate on the accounts rendered by the State Government in respect of externally aided projects (World Bank, Asian Development Bank and other Foreign Agencies) and Centrally Assisted/Aided projects.     

          Compliance Audit refers to examination of the transactions relating to expenditure of the audited entities to ensure whether the provisions of the Constitution of India and applicable Laws, Rules, Regulations, various orders and instructions issued by the concerned authorities are being complied with.

          In Performance Audit, the office takes up scheme or an activity implemented by a department. This would involve analyzing records from Secretariat level (Conceptualization) to field levels (implementing agency). A comprehensive analysis of the entire activity/scheme is taken up to ascertain the level of achievement of the objectives of the scheme or activity with suitable recommendations.

Audit Plan:

          An annual audit plan is drawn up every year based on the risk assessment of the auditee unit.

          After assessment of the risks associated with the unit, the auditee units are divided into 3 categories viz. annual, biennial, triennial. These units are planned for audit based on the periodicity by drawing up quarterly tour programmes of audit parties for field visits.

          The office also identifies schemes, functions and activities implemented by each department on the risk parameters and each wing takes up Performance Audit of one or two schemes or activities of the department after factoring in man power resources at disposal.

Audit Process:

          A central audit team carries out test check of accounts and vouchers received from the treasuries wherein compliance to General Financial Rules and Departmental Codes. The results of such audit tests are communicated to the department in the form of audit notes.

          At field level the primary records from which the auditee units render vouchers to treasury are subjected to test check on sampling method wherein accounts of two months are selected based on financial materiality. All the primary accounts viz. Store Accounts, Manufacture Accounts etc. are also subjected to audit scrutiny.

          After field audit, audit comments in draft form are received in head quarters sections of the office which are further vetted for accuracy and correctness of the comments. This Inspection or Local Audit Reports are then issued to the auditee unit after duly endorsing a copy to the controlling office for information under the signature of Deputy Accountant General for compliance. At each stage the department or the auditee unit is given opportunity to state its position on the audit comments.

          The above processes are followed even when a Performance Audit of any scheme is taken up for audit. The Secretary to Government is invited for an entry conference at the outset and results of audit with the departments concerned are discussed in an exit conference.

          Based on the response of the department/auditee unit, the audit comments are treated either settled or noted for further follow up. Important comments are included in an Audit Report published at the end of every year which is submitted to the Governor for placing before the legislature.