Para 2.2.32 — MSO (Audit)
Original Rule Text
2.2.32 The authorities of the Indian Audit and Accounts Department are not required, under paragraph 2.2.26, to undertake the formal scrutiny of the provisions relating to financial, accounting and auditing matters contained in the departmental manuals and thereby make themselves responsible for their accuracy when these merely reproduce extracts from the substantive codes, regulations, rules etc. However, when any new financial, accounting or audit procedures are sought to be introduced in the manuals, the Accountant General concerned may advise whether these are intra vires and are in accordance with correct principles; such advice should be confined only to specific individual rules and not extend to the manual in its entirety. In cases involving forms of accounts, any new accounting procedures or amendments thereto, it may be suggested to the departmental authorities that they refer the proposal to the Controller General of Accounts for necessary action in terms of Article 150 of the Constitution.
Note: From a practical point of view, it would be desirable for government departments engaged in the revision of codes or rules to acquaint Audit through the Finance Ministry or Department of the rationale for the revisions and to refer, at the same time, drafts of all amendments to rules and regulations having financial implications for scrutiny before issue. This scrutiny will essentially be based only on a test check and it is not intended, under any circumstances, that this should hold up the publication of the regulations. Audit should not also be too meticulous in its examination because the Finance Ministry or Department and other ministries and departments of Government also have their own responsibilities in this behalf.
What This Means
The audit department is not required to formally scrutinize departmental manuals that merely reproduce existing codes and regulations -- doing so would make audit responsible for the manual's accuracy. However, when departments introduce new financial, accounting, or audit procedures in their manuals, the AG may advise whether these are within the department's authority and follow correct principles. For changes involving accounting procedures, the AG should suggest that the department refer the proposal to the Controller General of Accounts. Any such scrutiny by audit should be practical and limited, not exhaustive.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Audit need not formally scrutinize manuals that merely reproduce existing rules
- 2New financial/accounting procedures in manuals may be reviewed by AG for validity
- 3Review should be limited to specific individual rules, not the entire manual
- 4Accounting procedure changes should be referred to Controller General of Accounts
- 5Audit scrutiny should be practical, not overly meticulous
- 6Departments should share rationale for revisions with audit via Finance Ministry
Practical Example
A state's Irrigation Department is revising its departmental manual and introduces a new procedure allowing officers to adjust advances by journal entry instead of cash recovery. The AG reviews this specific new procedure and advises that it does not conform to established accounting principles. The AG suggests the department refer the proposal to the Controller General of Accounts under Article 150 of the Constitution before including it in the manual.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Should audit scrutinize every page of a departmental manual?▼
Who should approve new accounting procedures?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.