## Performance Audit (Efficiency-cum-Performance Audit)
Performance audit is an objective examination of the financial and operational performance of an organisation, programme, authority, or function.
### Procedure for Conducting Performance Audit
| Step | Activity |
|---|---|
| 1 | Identification of topic |
| 2 | Preliminary study |
| 3 | Planning |
| 4 | Execution of audit |
| 5 | Reporting |
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## Audit of Receipts
The audit of receipts verifies the following:
1. Whether all revenues or other debts due to the government have been correctly assessed, realised, and credited to government account by designated authorities.
2. Whether adequate regulations and procedures have been framed to secure an effective check on assessment, collection, and proper allocation.
3. Whether such regulations and procedures are actually being carried out.
4. Whether adequate checks are imposed to ensure prompt detection and investigation of:
- Irregularities
- Double refunds
- Fraudulent or forged refund vouchers
- Loss of revenue through fraud, wilful omission, or negligence to levy/collect taxes or issue refunds.
5. Review of systems and procedures to ensure internal procedures adequately secure correct and regular accounting.
### Key Rule
> The extent and quantum of audit under each category is determined by the C&AG — this is not negotiable or questionable.
### Institutional Mechanism
- Auditor → Primary check
- Supervisor → Test check
- Group Leader → Control and direction