# Government Audit - Foundational Concepts
## Consolidated Fund of India (CFI)
Consists of:
- All revenue received from direct and indirect taxes
- All loans taken
- All amounts of repayment of loans received by GOI
Significance: All Govt expenditure is incurred from this fund. No money out of this fund shall be appropriated except as per law and Constitution.
## Public Accounts Committee (PAC)
A committee of selected members of Parliament, constituted by Parliament of India, to audit revenue and expenditure of GOI.
## UN Definition of Government Auditing
UN Handbook on Govt Auditing and Developing Countries defines Govt auditing as:
- Objective, systematic, professional and independent examination
- of financial, administrative and other operations
- of a public entity
- made subsequently to their execution
- for the purpose of evaluating and verifying them
- presenting a report containing explanatory comments on audit findings together with conclusions and recommendations for future actions
- by responsible officials
- and in case of examination of FS, expressing professional opinion
## Objectives of Government Audit
- Accounting for Public Funds
- Appraisal of Govt Policies
- Base for Corrective Actions
- Administrative Accountability - Govt audit is neither equipped nor intended to function as an investigating agency. Main objective is a combination of:
- Ensuring accountability of administration to legislature
- Functioning as an aid to administration
In India, this function is discharged by the independent statutory authority of C&AG through the agency of the Indian Audit and Accounts Department.