CO885-(20-21) — Page 339

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26. Auditors' communications with Accounting Officers upon questions arising directly out of the examination of the accounts will be as a rule in the form of queries, but questions relating to matters of procedure and to subjects not directly affecting the accuracy of accounts which have been submitted to examina- tion will be dealt with by letters.

27. Queries on the accounts of each year will be numbered consecutively, commencing with number one. of numbers may be used for each distinct group of accounts.

A separate series 28. All queries, when fully answered, together with copies of all reports to the Government arising out of the inspection and examination of accounts, will be forwarded by the Auditors for the information of the Director of Colonial Audit.

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29. Before forwarding the answered queries, the Auditors will append to the reply which has been furnished to each query a formal submission, addressed to the Director of Colonial Audit, indicating whether in their opinion the reply is satisfactory or the explanation may be admitted; or whether, in the case of an error in the accounts, either the over-payment has been recovered or the account has been adjusted; or, in cases where the remark would be applicable, that any subsequent action on the point referred to will be kept in view. The settled queries will be returned to the Auditor after inspection.

30 Auditors will keep the Director of Colonial Audit informed of all questions that they raise other than such as relate to matters of routine. They will, as far as possible, conduct no correspondence of importance without his knowledge and approval, but when this is unavoidable the circumstances will be reported at the earliest opportunity.

31. In the event of any unusual or unexplained delay occurring in obtaining replies to enquiries or representations made by them, Auditors will report the circumstances to the Government and to the Director of Colonial Audit.

32. Before the commencement of each year of Account Auditors will submit for the approval of the Director of Colonial Audit a programme of the work which they propose to undertake in connection with the accounts of the year. gramme will show--(1) a complete list of the accounts to be The Annual Pro- dealt with; (2) the nature of the examination to be given to each (i.e., whether detailed or test); and (3) in regard to test examina- tions, an indication of the extent of the test to be applied. Any proposed tours of inspection, with details of the work to be done and the time estimated to be taken on each, should also be included.

33. The Annual Programme should be forwarded in time to reach the Director of Colonial Audit not later than the first week in November in the case of those Colonies where the financial year ends on the 31st December, and not later than the first week in February where the financial year ends on the 31st March.

34. A copy of the proposed Programme will be furnished by the Auditor of each Colony to the Governor for his information and for any additions or alterations he may wish to suggest.

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35. Any special or urgent examination or enquiry that may be required by the Governor will be carried out by the Auditor. The Auditor's report on such special work will be made to the Governor and the circumstances notified to the Director of Colonial Audit.

36. Each Auditor will keep a diary, which will be available for the personal inspection of the Governor, in which will be entered daily a note of all work done by him. Each member of the local audit establishment will keep will be frequently inspected by the Auditor.

a similar diary which

37. Monthly Returns showing the state of the examination up to the end of each month of all accounts for the audit of which they are responsible and containing explanations of any omissions or departures from the approved Programme will be forwarded by the Auditor to the Director of Colonial Audit. Copies of these Monthly Progress Returns will also be furnished to the Governor for his information.

38. As soon as possible after the termination of each financial year the Auditors will furnish to the Director of Colonial Audit a general report on the audit of the accounts of the year. The Auditors' Annual Reports will deal with the manner in which the accounts have been kept and rendered; with the aufficiency of the existing checks against irregularity or fraud; with any unauthorised departures from the settled Regulations; and with any points which have not been specifically brought to notice in previous correspondence. Reference will also be made to any errors that have been brought to notice too late for adjustment before the account was closed; to the state of the arrears in the collection of revenue; and to any material point in respect of which the Annual Programme has not been completed. A list of any outstanding queries relating to the accounts of the year or of previous years will be appended to the report. reports, which should reach the Director of Colonial Audit within These six months of the close of the financial year, will be accompanied by the Annual Abstract Account of the Colony (in duplicate) and the other statements referred to in Rules 353 and 354 of the Colonial Regulations. Each of these statements will be certified by the Auditors as having been examined.

39. The Director of Colonial Audit will furnish to the Secre- tary of State a certified copy of the Annual Abstract Account of each Colony, together with such report as he may consider it necessary to make.

EXAMINATION OF ACCOUNTS.

40. The Auditor will be responsible for the audit and inspec- tion of all public accounts in the Colony in which he is serving whether such accounts relate to the Colonial revenue and expen- diture, to other receipts and payments, to special funds or Departments under the administration or control of the Govern- ment, or to stores.

41. In his examination of accounts the Auditor will be guided by the Colonial Regulations together with the laws and approved regulations of the Colony and by such instructions as may be issued from time to time by the Director of Colonial Audit.

PUBLIC RECORD OFFICE

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C.O.885

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