GOVERNMENT OF
PAKISTAN
MINISTRY OF LAW,
JUSTICE, HUMAN
RIGHTS
AND PARLIAMENT
ARY AFFAIRS
(Law, Justice and Human Rights Division)
Islamabad, the 17th May, 2001
DEFINITION
"Auditor-General" means the Auditor-General of Pakistan appointed under Article.168 of
the Constitution of the Islamic Republic of Pakistan;
APPINMENT AND REMOVAL
(1) There shall be an Auditor-General of Pakistan, who shall be appointed by the
President
(2) Before entering upon office the Auditor-General shall make before the Chief Justice
of Pakistan oath in the form set out in the Third Schedule'
(3) The terms and conditions of service, including the term of office, of the Auditor-
General shall be determined by Act of Parliament and, until so determined, by Order of
the President
(4) The Auditor-General shall not be removed from office except in the like manner and
on the like grounds as a Judge of the Supreme Court
SALARY AND PENSION
The salary, pension and other terms and conditions of service of the Auditor General
shall be as provided in the Schedule to this Ordinance.
PAY, ALLOWANCES AND PENSION
The Auditor-General shall be —
(a) Paid a salary which is twenty per cent higher than the maximum salary
payable to an officer in Basic Pay Scale 22;
(b) Entitled to all such benefits including entitlement pertaining to travel, as
are admissible to a Minister of State ; and
(c) Paid, for each completed year of service, a pension at the rate of twelve
thousand rupees per annum
TERM OF OFFICE
The Auditor-General shall, unless he sooner resigns or is removed from office in
accordance with the Constitution, hold office for a fixed term of five years from the date
on which he assumes such office or he attains the age of sixty-five years whichever is
earlier. Explanation—For the purpose of this section the term of live years in respect of
the Auditor-General holding office immediately before the commencement of this
Ordinance shall be computed from the date on which he had assumed office.
RESIGNATION
The Auditor-General may, at any time, by writing under his hand addressed to the
President resign his office
LEAVE
The Auditor-General may be granted leave on such terms and conditions as the president
may by order published in the official Gazette, prescribe.
TYPES OF AUDIT TO BE PERFORMED
• Financial audit
• Compliance audit
• Performance audit (if required)
REPORTS OF AUDITOR-GENERAL (171)
The reports of the Auditor-General relating to the accounts of the Federation shall be
submitted to the president, who shall cause them to be laid before the National Assembly
and the reports of the Auditor General relating to the accounts of a Province shall be
submitted to the Governor of the Province, who shall cause them to be laid before the
provincial Assembly
PROCEDURE FUNCTIONS AND POWERS OF AUDITOR-
GENERAL (169)
The Auditor-General shall, in relation to:
(a) The accounts of the Federation and of the Provinces; and
(b) The accounts of any authority or body established by the Federation or a
Province perform such functions and exercise such powers as may be determined
by or under Act of Parliament. And, until so determined, by Order of the
President.
FUNCTIONS OF AUDITOR GENERAL OF PAKISTAN
1. grants or loans given to other authorities or bodies
Where any grant or loan is given for any specific purpose from the Consolidated Fund
of Federal Government or of any Province or of any district to any authority or body,
not being a foreign State or international organization, the Auditor-General may
scrutinize the accounts by which the sanctioning authority satisfies itself as to the
fulfillment of the conditions subject to which such grants or loans were given and for
this purpose have the right of access, after giving reasonable previous notice, to the
books and accounts of that authority or body :
2. Audit of receipts of Federation or of Provinces or of districts.—
The Auditor-General shall audit all receipts which are payable into the Consolidated
Fund or Public Account of the Federal Government and of each Province and in the
accounts of each district and to satisfy himself that all such receipts which are payable
the Consolidated Fund, Public Account or any district account have been properly
and correctly deposited and rules and procedures relating to which receipts are being
fully observed and the systems are in place to ensure proper assessment and
collection of government receipts.
3. Audit on accounts of stores and stock.
The Auditor-General shall have authority to audit and report on the accounts of stores
and stock kept in any office or department of the Federation or of a. Province or of a
district.
4. Audit of accounts
The Auditor-General has authority
• To inspect any office of accounts
• To require that any accounts, books, papers and other documents
• To enquire or make such observations as he may consider necessary, and to
call for such information as he may require for the purpose of the audit.
5. AUDIT of companies and corporations established in the public sector
The Auditor General shall perform functions and exercise powers in relation to
the audit including supplementary audit of the accounts of the public sector
companies in accordance with the provisions of the Companies Ordinance 1984
6. Power to dispense with detailed audit.
The Auditor-General may dispense with, when circumstances so warrant, any part
of detailed audit or any accounts or of transactions and to apply such limited
check in relation to such accounts or transactions as he may determine.
7. Delegation of powers
Any power exercisable by the Auditor-General under the provisions of this
Ordinance, or any other law may be exercised by such officer of. His department
as may be authorized by him in this behalf by general or special order.
8. Budgetary provisions.
The Auditor-General shall have the full powers to incur expenditures within the
budgetary provisions.
9. Power to amend the Schedule
The Federal Government may, by notification in the official Gazette, amend the
Schedule so as to add any entry there to or modify or omit any entry therein.
10. Power to make rules
The President may by notification in the official Gazette make rules for carrying
out the purpose of this Ordinance.
11. Power to make regulations
The Auditor-General may with the previous approval of the Federal Government,
make important regulations, not inconsistent with the provisions of this ordinance
and the rules made there under as he may consider necessary for carrying out the
purpose of this Ordinance.
12. Auditor-General to give Directions as to Accounts
Auditor-General to give Directions as to Accounts his staff
13. To determine the existence
To determine the existence, accuracy and completeness of the current and
development expenditure
14. To ensure the compliance
The function of an auditor is to ensure the compliance of applicable rules,
regulations and policies regarding the incurrence of such expenditure.
15. To ensure proper classification
The function of an auditor is to ensure proper classification with respect to
account head, function and cost centre
16. To determine if internal controls
The function of an auditor general of Pakistan is to determine if internal controls
for recording and safeguarding of assets are adequate
17. Providing recommendations
The function of an auditor general of Pakistan is to providing recommendations to
improve operating efficiency and internal controls
18. Review the management
The function of an auditor general is to review the management, financial and
operating controls to appraise the adequacy and soundness.
19. Advise on methodology AND improve communication
The function of an auditor general is to advise on methodology to enhance PAD’s
communication with stakeholders, for internal audit of PAD’s systems under
development and to improve communication of audit results and to develop
quality assurance programs
20. Miscellaneous
Prepare guidelines for the introduction of international auditing standards.
Introduce modern auditing techniques and concepts and Review PAD’s audit
policies, processes and procedures for the audit functions.
