Para 2.2.2 — MSO (Audit)
Original Rule Text
2.2.2 The primary objectives of audit of expenditure are to check whether:
(i) funds have been authorised by the competent authority prescribing the limits within which expenditure can be incurred;
(ii) the expenditure conforms to the relevant provisions of the Act and the Constitution and of the laws made thereunder and is also in accordance with the financial rules and regulations framed by the competent authority;
(iii) either a special or general sanction of the competent authority authorising the expenditure is available; and
(iv) all financial transactions have been correctly recorded in the accounts under examination and have been allocated to the appropriate heads of account.
What This Means
The audit of government expenditure has four primary objectives: first, checking that funds were authorized by the competent authority; second, verifying that spending conforms to the Constitution, laws, and financial rules; third, ensuring that a proper sanction (general or special) from the competent authority exists for each expenditure; and fourth, confirming that all financial transactions are correctly recorded in accounts and allocated to the right heads of account.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Check that funds were authorized by competent authority within prescribed limits
- 2Verify expenditure conforms to the Constitution, laws, and financial rules
- 3Ensure a valid sanction (general or special) from competent authority exists
- 4Confirm correct recording and classification in accounts under proper heads
Practical Example
An audit team reviews a department's purchase of office furniture worth Rs 8 lakh. They check: (1) Was the budget allocation sufficient (fund authorization)? (2) Did the purchase follow GFR tendering rules (compliance with rules)? (3) Did the department head have the authority to sanction Rs 8 lakh, or was higher-level approval needed (sanction check)? (4) Was the expenditure booked under 'Office Expenses' and not misclassified under 'Maintenance' (correct recording)?
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 four main checks in expenditure audit?▼
What is the difference between general and special sanction?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.