Para 2.1.3 — MSO (Audit)
Original Rule Text
2.1.3 The broad objectives of audit are:
(i) to provide an unbiased, impartial and objective assessment of the reliability and fair presentation of the financial activities and financial position of the Government in their accounts;
(ii) to provide an assessment of the due observance of the laws, rules, procedures and systems in keeping with the financial interests of and propriety in the functioning of the Government; and
(iii) to provide an assessment of the achievement of economy, efficiency and effectiveness (value for money) in the implementation of the mandated activities of the Government.
In the process, audit aims to:
(a) safeguard the financial interests of the taxpayer;
(b) assist the Parliament or State/Union Territory Legislature in exercising financial control over the Executive; and
(c) watch that various authorities of the State set up by, or under, the Constitution act in regard to all financial matters in accordance with the
Constitution and the laws of Parliament and appropriate Legislatures and the rules and orders issued thereunder.
The right of independent criticism is inherent in the auditorial function.
What This Means
Government audit has three broad objectives: first, to check whether the government's financial statements are reliable and fair; second, to verify that laws, rules, and procedures are being followed properly; and third, to assess whether government programs deliver value for money through economy, efficiency, and effectiveness. Through this process, audit protects taxpayer interests, helps Parliament exercise financial control over the Executive, and ensures constitutional authorities handle finances lawfully.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Three core objectives: reliable accounts, compliance with laws, and value-for-money assessment
- 2Audit safeguards the financial interests of taxpayers
- 3Audit assists Parliament/Legislature in exercising financial control over the Executive
- 4Audit watches that constitutional authorities handle finances per the Constitution and laws
- 5The right of independent criticism is inherent in the audit function
Practical Example
During an audit of a rural roads programme, auditors check three things: whether the financial statements accurately show how much was spent (reliability), whether the tendering process followed GFR and state PWD rules (compliance), and whether the cost per kilometer of road built is reasonable compared to benchmarks (value for money). Any deviations are reported to the Legislature.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What are the three main objectives of government audit?▼
How does audit help Parliament?▼
Can auditors criticize government spending decisions?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.