Para 2.2.26 — MSO (Audit)
Original Rule Text
2.2.26 In relation to audit of expenditure against regularity, it is the duty of Audit to examine all financial rules and orders issued by the Executive authorities affecting expenditure and other transactions subjected to audit to see that the rules and orders are themselves intra vires and to ensure that the transactions to which they relate may be effectively audited.
What This Means
In the context of regularity audit of expenditure, it is audit's duty to examine all financial rules and orders issued by executive authorities that affect expenditure and other audited transactions. The purpose is twofold: to check that these rules are themselves within the authority of the issuing body (intra vires), and to ensure that the resulting transactions can be effectively audited.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Audit must examine financial rules and orders issued by executive authorities
- 2Check that rules are intra vires (within the issuing authority's powers)
- 3Ensure transactions under those rules can be effectively audited
- 4Applies to all rules affecting expenditure and other audited transactions
Practical Example
A state department issues an order allowing district collectors to sanction works up to Rs 50 lakh without referring to the state government. The AG examines this order and finds that under the state's Delegation of Financial Powers, district collectors can only sanction up to Rs 25 lakh. The order is flagged as ultra vires (beyond the department's delegated authority), and the department is informed.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What does 'intra vires' mean in audit?▼
Why does audit examine financial rules themselves, not just expenditure?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.