Annexure I — MSO

• Audit against sanctions to expenditure 2.2.34 30 • Audit against propriety 2.2.46 33 • Other guidelines 2.2.48 34 • Annexure – Illustrative list of tasks that may be entrusted to the propriety audit section 35 Chapter 3 – Audit of Receipts • Audit mandate 2.3.1 37 • Audit objectives and scope 2.3.2 37 • Audit approach 2.3.6 37 • Key areas of audit scrutiny – Audit of regulations and procedures for assessment, collection and refunds 2.3.7 38 • Audit of arrangements for detection/prevention of frauds and other irregularities 2.3.8 38 • Audit of effectiveness of rules and orders governing collection of receipts 2.3.9 38 • Audit of periodicity of recoveries 2.3.10 38 • Examination of outstanding dues 2.3.11 38 • Audit of internal controls 2.3.12 39 • Cross verification 2.3.14 40 • Other guidelines 2.3.15 40 Chapter 4 – Audit of Accounts of Stores and Stock • Audit mandate 2.4.1 41 • Audit objectives and scope 2.4.3 41 • Key areas of audit scrutiny – Audit of purchase of stores 2.4.4 41 • Audit of custody and issue of stores 2.4.5 42 • Audit of write-off/disposal of stores 2.4.6 42 • Audit of stores management 2.4.7 43 • Audit of stores records 2.4.8 43 • Physical verification of stocks 2.4.10 44 • Audit of accounts of furniture in residences of high officials 2.4.11 44 • Other guidelines 2.4.12 44 Chapter 5 – Audit of Commercial Accounts • Audit mandate 2.5.1 46 • Government companies 2.5.3 46 • Deemed government companies 2.5.5 46 • Statutory bodies 2.5.6 46 • Departmental undertakings 2.5.9 47 • Audit objectives and scope 2.5.10 47 • Audit arrangements 2.5.12 47 • Key areas of audit scrutiny – Audit of government companies 2.5.13 47 • (A) Issue of directions to statutory auditors 2.5.14 48

• Annexure I – Duties and responsibilities of members of Central Audit Support Sections 69 • Annexure II – Duties and responsibilities of members of Central Audit Parties 73 Chapter 2 – Gazetted Government Servants’ Audit • Introduction 3.2.1 77 • Audit objectives and scope 3.2.4 78 • Source documents 3.2.7 79 • Audit approach 3.2.8 79 • Issues for audit scrutiny – Audit of pay bills 3.2.9 79 • Check of pay fixation 3.2.11 80 • Compensatory allowances, fee and honoraria 3.2.12 80 • House rent and other compensatory allowances 3.2.13 81 • Reimbursement of expenditure on medical attendance 3.2.14 81 • Travelling allowance bills 3.2.15 81 • Passage concessions 3.2.19 82 • Service books and leave accounts 3.2.20 82 Chapter 3 – Establishment Audit • Audit objectives and scope 3.3.1 83 • Source documents 3.3.3 83 • Audit approach 3.3.4 83 • Issues for audit scrutiny – Service books 3.3.6 84 • Leave accounts 3.3.8 85 • Payment of leave salary 3.3.9 85 • Establishment bills 3.3.10 85 • Check of fixation of pay on revision of pay scales 3.3.14 86 Chapter 4 – Audit of Contingent Expenditure • Introduction 3.4.1 87 • Source documents 3.4.5 88 • Audit approach 3.4.6 88 • Issues for audit scrutiny – General checks 3.4.7 88 • Audit of contract contingencies 3.4.8 89 • Audit of scale regulated contingencies 3.4.9 89 • Audit of special contingencies 3.4.10 89 • Audit of countersigned contingencies 3.4.11 90 (A) Bills countersigned after payment • (B) Bills countersigned before payment 3.4.15 90 • Audit of fully vouched contingencies 3.4.16 91 • Contingent charges relating to wages of mazdoors and pay and allowances of staff paid from contingencies 3.4.17 91 • Audit of sub-vouchers and payees' receipts 3.4.18 91 • Audit of payment against contracts 3.4.19 91