Professional development & Self

enrichment
CORE VALUES of the IA&AD
Independence, Objectivity, Integrity, Reliability, Professional Excellence, Transparency,
Positive Approach

Audit is a means to an end rather than an end in itself. Audit findings utility is manifested only when
all the stakeholders, particularly the Executive, Legislature and citizens believe in the credibility of
these findings and use them for enhancing the quality of governance. - Speech by the President of
India Shri Pranab Mukherjee at the inauguration of the 27th Conference of Accountants General on
'Promoting Good Governance & Accountability through Public Audit'

Goal 2 – Promoting professionalism in public sector auditing

Recommendations
Creating an institutional mechanism of Knowledge Centres (KCs) for knowledge capture
and maintenance on a sector‐specific basis
Creating sector‐specific pools of Knowledge Resource Persons (KRPs) at two levels
(IAAS and supervisory officials) and providing suitable remuneration for this continuing,
additional responsibility
Encouraging Central and State Governments to build and strengthen institutional
arrangements for internal audit and risk management
Establishing a Chartered Institute for Public Accountants and Auditors of India (CIPAAI)
on the lines of ICAI and ICWAI, under the aegis of the CAG of India.
CIPAAI would tackle issues of day‐to‐day accounting problems and professional
upgradation of the skills of the vast pool of finance, accounts and audit personnel at the
grass roots level, and address deficiencies in the accounting processes and financial
controls across organisation like huge arrears in accounts finalisation and weaknesses in
internal audit.
CIPAAI would provide professional certification to the Group A professionals of the CAG
organisation entering into the Government of India through Civil Service Examinations.
CIPAAI would provide professional certification to the Group B and C professionals from
the CAG by subsuming the SOGE currently being conducted by the CAG and also to other
finance, accounting and audit professionals in State/Central government departments on
demand.
The need in SAI India to set up an International Consultancy wing, as there is a great
demand for SAI India’s expertise in areas of Public Audit and Financial Management
amongst many SAIs who are in the process of developing the public audit systems in
their countries.

Personal & Professional Integrity

Mahatma Gandhi. On October 22, 1925, Gandhi published a list he called the Seven Social Sins in his
weekly newspaper Young India.
Seven Social Sins
1. Politics without principles
2. Business without morals
3. Well-being without work
4. Education without character
5. Science without humanity
6. Fun without responsibility
7. Religion without sacrifice
2nd Adm. Reforms Commission in its 4th Report on ‘Ethics in Governance’

Your work is going to fill a large part of your life, and the only
way to be truly satisfied is to do what you believe is great work.
And the only way to do great work is to love what you do. If you
haven’t found it yet, keep looking. Don’t settle. As with all matters
of the heart, you’ll know when you find it. Steve Jobs
August 2011 Feedback sought from CAG for improving Integrity

a) Lay down a Code of ethics in line with the INTOSAI Professional Standards and make public
the ethical requirements and obligations of Auditors. Such a Code can be subjected to regular
feedback from our stakeholders (staff, audit entities, professional audit bodies) on their
opinions as to its ethical standards. We may also need to review this feedback to identify any
real or perceived ethical failings and ensure that any identified ethical concerns are addressed
conscientiously by the senior management of the Department. In order to convey the intent,
the Code may be regularly affirmed in periodical meetings held with Audit personnel.
b) Make audit planning, risk analysis and sample selection guidelines comprehensive and
practical to minimize the possibility of manipulating the audit scope. Encourage sharing with
the management the methodology adopted for these exercises.
c) Institutionalize logistics support extended by the audit entity to the auditors wherever this is
being provided in order to bring in more transparency in dealings with the organization being
audited.
d) Increase interaction with audit entity at middle and senior management levels. This will
generate occasions to convey a message of sincere intent to the organization and also to
receive feedback on conduct of our field formations.
e) Implement web-based interface for receiving feedback and complaints by making public the
details of audit parties, audit programmes and senior management in the field offices.
f) Make ethical concerns and managing conflicts of interest part of structured training
intervention for all levels in the Department.

The idea of governance with integrity and accountability is as old as organized

government. Preservation of the resources of the king in ancient times was accorded
top most priority. As early as in the third century BC, Kautilya in his famous work,
ARTHASHASHTRA, had observed that human nature was disposed to acquire public
money for private gain. He wrote: “Just as it is impossible not to taste honey or poison
that one may find at the tip of one’s tongue, so it is impossible for one dealing with
government funds not to taste, at least a little bit, of the king’s wealth.” He added:
“Just as it is impossible to know when a fish moving in water is drinking it, so it is
impossible to find out when government servants, in charge of undertakings,
misappropriate money.” Therefore, Kautilya went on to formulate a series of checks
and balances in the administrative system. He wrote that “in all cases (where) an
official has caused loss of revenue to the state….his property shall be confiscated.”

IA&AD
HAL revenue recognition of sales for aircraft - IOC, SOC & FOC
While the company was recognizing sales on aircraft and helicopter for which SOC had been issued by
the customer, we observed that mandatory works required to be completed on the product before
issue of SOC had been carried out after the SOC dates and even after 31st March of the relevant
accounting period.

The HAL receives advance from the military, almost three times its annual turnover.
In 2010-11, the financial turnover was a bit over Rs. 13,000 crore, but the order
book was Rs. 68,265 crore, against which HAL took advance of Rs. 35,146 crore
from its customers. On that advance, it earned an interest income of over Rs. 2,200
crore, and booked a profit after tax of Rs. 2,114 crore. That year, HAL paid the
government, its majority shareholder, a dividend of Rs. 423.12 crore.

NEC
Regional Plan
Normative Allocation
Web-based UC filing
Monitoring through satellite imagery