Para 2.1.25 — MSO (Audit)
Original Rule Text
2.1.25 All Audit Offices are required to prepare a biennial audit plan. A single plan will integrate and include Central audit of vouchers and other records, routine inspections (phase audit), financial audits (certification audits) and value for money audit and will comprise a detailed plan for the first year and the broad framework for the second year. This will be an annual exercise when the audit plan for the current year will be updated and modified keeping in view the availability of manpower resources and the priorities of audit during the year, while adding thereto a broad framework for the next year. Thus the audit plan will be an active rolling plan. The main objectives of the biennial audit plan will be to:
(i) provide assurance that all deserving and significant auditable entities have been considered while determining priorities;
(ii) provide a framework for identifying the departments, programmes, functions, etc, which are significant and are vulnerable to risks and serious financial irregularities;
(iii) optimise the use of available resources for achieving the short term and long term audit objectives; and
(iv) minimise redundant audits.
What This Means
All audit offices must prepare a biennial (two-year) audit plan that integrates all types of audit work — central audit of vouchers, routine inspections, financial audits (certification), and performance/value-for-money audits. The plan is detailed for the first year and outlines a broad framework for the second year. It is updated annually as a rolling plan. The purpose is to ensure all significant entities are covered, risks are identified, resources are optimized, and redundant audits are avoided.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Biennial audit plan is mandatory for all audit offices
- 2Integrates central audit, inspections, financial audit, and performance audit
- 3Detailed plan for year 1, broad framework for year 2
- 4Updated annually as a rolling plan
- 5Four objectives: cover significant entities, identify risks, optimize resources, minimize redundancy
- 6Must prioritize departments vulnerable to financial irregularities
Practical Example
The Accountant General (Audit) of Gujarat prepares a biennial plan covering 2025-27. Year 1 details which district offices, PSUs, and departments will be inspected, which performance audits will be conducted (e.g., mid-day meal scheme), and how 200 audit staff will be deployed. Year 2 has a broad framework that will be detailed next year — creating a continuous rolling plan that adapts to emerging priorities.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why is the plan biennial instead of annual?▼
What is a 'rolling plan' in audit?▼
How are audit priorities determined?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.