Check List of Risk Indicator
This is a very sensitive task and should generally be handled by the leader of the Internal Audit team personally. It should be seen if:
- Have there been repeated incidents of defalcations, losses & irregularities. If so, when occurred. Non Maintenance of accounting record in the prescribed forms leading to wrong depiction of account, defalcation or fraud e.g. forget refund order, double refund, and loss to revenue through frauds non depiction of recoveries resulting in less recovery.
- Whether these occurred due to system failure and defects or due to individuals.
- Whether those system defects were corrected by Amendment Rules. Whether action was taken for fixing responsibility.
- Whether office orders exists regarding exercise of delegation powers of Head of the Department Head of Office under relevant rules or due to non filling of post of Head of the Department Head of Office for long time.
- Availability and adequacy of security from the cash handing staff and procedure for depositing the amount in the Bank account.
- Whether the second eye is being followed in the maintenance of the Cash Book and adequate methods for simple checks are taking place or not.
- Whether annual verification of stock as required under GFR has been done.
- Whether some critical staff has continued in the same position without rotation for unjustifiable length of time.
- Whether any interference by unauthorized staff is being made.
- Revenue receipts collected by a Department are not promptly deposited into government account thus creating scope for mis-utilization of government money.
- Laxity found in respect of checking of receipts realized and remitted, with the bank scrolls.
- Authorizing expenditure sanction over and above the powers under delegation of powers to be exercised by Head of the Department Head of Office leading to excess expenditure out of Government exchequer.
- Non- adoption of correct procedure with regard to purchase policy envisaged in General Financial Rule Orders issued in this regard as it gives scope for irregularities.
- Whether the monthly reconciliation of revenue receipts is being carried out between Drawing & Disbursing Officer.