Group 15: Government Audit

Correct answer D: Removal only in like manner and on like grounds as a Supreme Court Judge.

Article 148(1) protects removal; do not confuse executive displeasure with the constitutional process.

Correct answer B: Salary and the specified protected rights cannot be varied to the incumbent's disadvantage after appointment.

Article 148(3) protects salary and rights regarding leave, pension and retirement age against disadvantageous variation.

Correct answer D: Submit the State report to its Governor for laying before the State Legislature.

Article 151(2) states the State route; distinguish it from the Union route.

Correct answer D: Duties/powers depend on the applicable Parliamentary-law mandate, not account form alone.

Article 149 mandate andArticle 150 form are different; establish actual legal audit scope.

Correct answer C: Covered balance sheets and subsidiary accounts are not automatically excluded by testing only profit-and-loss.

Section 13(c) includes these departmental account categories; scope is not satisfied by a label-based omission.

Correct answer B: Being Rs 2 lakh under the ceiling does not cure the Rs 9 lakh purpose issue.

Section 13(a) tests legal availability/applicability and governing authority; an amount ceiling is not purpose authorisation.

Correct answer A: Suitable comparable resource criteria, quality and relevant costs, not price alone.

Performance economy conclusions require suitable criteria and evidence; a non-comparable price is not a complete verdict.

Correct answer C: Cost per verified unit falls from Rs 15000 to Rs 10000, an indicator to evaluate with the supplied criteria.

1500000/100=15000; 1000000/100=10000. A resource/output indicator is not by itself effectiveness.

Correct answer A: Both inclusive limbs are met:Rs 25 lakh and 75% of total expenditure.

25 divided by(100/3)=.75; not-less-than boundaries are inclusive. The fraction is exact, not rounded expenditure.

Correct answer D: It fails 14(1) deeming percentage but may be considered under 14(2) with the required previous approval.

Keep the two routes distinct: 14(1) has both deeming limbs; 14(2) has its own amount and prior-approval condition.

Correct answer D: Continuation covers the further two years even though those conditions fail.

Section 14(3) refers to qualifying audit under either subsection(1) or(2), with a further two-year period.

Correct answer A: The cash reconciliation agrees, but supported completed-work spending is at most Rs 17 lakh pending further evidence.

20+8=28; 20-3=17. Section 15 scrutiny concerns condition fulfilment, not arithmetic alone; advance is not automatically irrecoverable.

Correct answer B: An order after consultation with the CAG under the section 15(1) proviso.

The 15(1) proviso identifies the competent public-interest order and consultation; mere recipient convenience is insufficient.

Correct answer D: Give the concerned corporation reasonable opportunity to make representations before authorisation.

Section 15(2) combines authorisation, CAG consultation and reasonable opportunity for corporation representations.

Correct answer A: Proper allocation of revenue.

Section 16 covers assessment, collection and proper allocation, including duly observed procedures.

Correct answer D: Yes, within the mandate-linked statutory duties; document and assess unresolved evidence limits.

Section 18 provides necessary questions/information powers linked to accounts/reports it is the CAG's duty to prepare.

Correct answer A: Section 17 authorises audit/report on stores and stock accounts kept in covered Union or State offices/departments.

Authority and evidence are distinct: use supported stock/condition facts and actual records, not automatic fraud conclusions.

Correct answer B: Use the respective governing legislation for this corporation, not another corporation's scope by analogy.

Section 19(2) requires the respective legislation; a similar name or structure is not the actual authority.

Correct answer C: CAG shall audit and has access to the corporation's books/accounts for the audit.

Section 19(3) ties audit/access to that statutory-corporation request; do not broaden or change entity type.

Correct answer C: Laying before each House of Parliament as soon as may be.

Section 19 A(2) says each House and as-soon-as-may-be, not an invented fixed deadline.

Correct answer A: Firm up audit subject, scope, objectives, access and roles within the legally agreed terms.

CAG 2017 paragraph 2.5.2.1 expressly addresses agreement and clear terms for entrusted audits, alongside section 20 conditions.

Correct answer C: Reasonable opportunity for the body to make representations under 20(3).

Section 20(3) requires public-interest expediency satisfaction and representation opportunity; they are not alternatives.

Correct answer B: Describe actual coverage and evidence-based conclusions without claiming every unchecked transaction verified.

Section 24 discretion does not replace evidence or remove inherent assurance limits.

Correct answer D: No; performance target conclusions need their own appropriate criteria and evidence.

Financial audit and performance audit objectives differ under 2.2; financial audits are attestation engagements under 2.3.3.

Correct answer B: The auditor.

Paragraph 2.3.3 distinguishes auditor measurement/direct reporting from responsible-party measurement/attestation.

Correct answer B: 75%, based on 300/400, not 150% from work entries.

Outcome denominator is the eligible household target; output entries and unique achieved outcomes are not interchangeable.

Correct answer C: Evaluate relevant contrary evidence and responses, distinguish supported findings from a legal determination of fraud.

CAG 2017 scepticism/evidence principles require open-minded evaluation; fraud is a legal concept and audit does not make legal determinations.

Correct answer C: That using the expert transfers SAI responsibility for the audit report to the expert.

Paragraph 2.5.1.4 expressly retains SAI responsibility when using other auditors/experts.

Correct answer C: Proposed correction, not verified implementation; inspect actual posting before calling it completed.

Evidence and follow-up principles distinguish suggested action from actual correction; final status must be verified.

Correct answer A: Qualitative materiality, public interest and consequences alongside monetary value.

Paragraph 2.5.1.6 includes nature/context/stakeholder/public-interest and societal consequences, not only monetary size.