Audit of Stores and Stocks

Audit of the accounts of stores and stocks has been developed as a part of expenditure audit with
reference to the duties and responsibilities entrusted to C&AG. Audit is conducted to ascertain whether
the Regulations governing purchase, receipt, and issue, custody, sale and stock taking of stores are
well - devised and properly carried out. The aim is also to bring to the notice of the government any deficiencies in quantities of stores held or any defects in the system of control. The audit of purchase of
stores is conducted in the same manner as audit of expenditure, namely, that these are properly
sanctioned, made economical and in accordance with the Rules for purchase laid down by the
competent authority. The auditor has to ensure that the prices paid are reasonable and are in
agreement with those shown in the contract for the supply of stores, and that the certificates of quality
and quantity are furnished by the inspecting and receiving units. Cases of uneconomical purchase of
stores and losses attributable to defective or inferior quality of stores are specifically brought by the
audit. Accounts of receipts, issues and balances are checked regarding accuracy, correctness and
reasonableness of balances in stocks with particular reference to the specified norms for level of
consumption of stock holding.