(As per section 5 of) the Audit Act, 2048 requires that the Auditor General shall audit following matters considering the propriety thereof-
i. On the propriety of any expenditure and its authorization, if in the opinion of the Auditor General such expenditure is a reckless one or is an abuse of national property, whether movable or immovable, despite that the expenditure confirms to the authorization, and
ii. On the propriety of all authorizations issued in respect of any grant of national property whether movable or immovable, fixed or current, or underwriting of any revenue, or any contract, license or permits relating to mining, forest, water resources, etc. and any other act of abandoning movable or immovable, assets of the nation.
The Auditor General may not include in the report minor items of discrepancy and other items deemed as insignificant in view of their property which were observed during the audit of income and expenditure.
(Note: Prevailing Act for Government Audit is Audit Act 2075, the provisions mentioned are similar to the new Act)