Para 2.1.26 — MSO (Audit)
Original Rule Text
2.1.26 For effective implementation of the audit planning methodology, the overall audit objectives should be set out as clearly as possible at the outset. In order to achieve the
objectives, as many auditee units as feasible should be covered having regard to the availability of resources—human as well as financial. While identifying departments, institutions, programmes, issues, etc. for inclusion in the biennial audit plan, the quantum of expenditure/revenues, socio-economic significance, vulnerability to serious financial irregularities, political and managerial sensitivity of their activities and auditability of units will be taken into account. Other units that are not considered to be vulnerable or sensitive and have not been audited for prolonged periods should be considered for coverage in the biennial plan in such a way that these are also subjected to audit, preferably in a cycle of six to seven years. The periodicity and duration of audit should also be reviewed from time to time so as to ensure optimum coverage with the available resources.
What This Means
When planning audits, clear objectives must be set from the start. The audit plan should cover as many government offices as possible given available staff and budget, prioritizing units with high expenditure, social importance, or risk of financial irregularities. Even low-risk offices that have not been audited for a long time should be covered on a rotation of six to seven years.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Set clear audit objectives at the outset of every planning cycle
- 2Prioritize units by expenditure size, socio-economic significance, and vulnerability to irregularities
- 3Non-priority units should still be audited at least once every 6-7 years
- 4Review periodicity and duration of audit regularly to optimize coverage
- 5Balance available human and financial resources against auditee coverage
Practical Example
The AG office is preparing its biennial audit plan and must choose which departments to audit. The Education Department, which manages a large mid-day meal scheme worth thousands of crores, is flagged as high priority due to expenditure volume and social sensitivity. Meanwhile, a small protocol office last audited five years ago is also included to ensure it does not go beyond the seven-year rotation limit.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
How often should each government unit be audited?▼
What factors determine which units are prioritized for audit?▼
Who decides the audit plan?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.