Para 2.2.46 — MSO (Audit)
Original Rule Text
2.2.46 It is an essential and inherent function of Audit to bring to light not only clear and obvious irregularities but also every matter which, in its judgement, appears to involve improper expenditure or waste of public monies or stores even though the accounts themselves may be in order and no obvious irregularity has been committed. Such audit, often called Propriety Audit, "extends beyond the formality of the expenditure to its wisdom, faithfulness and economy" (Hallam). It is thus not sufficient to see that sundry rules or orders of a competent authority have been observed. It is of equal importance to see that the broad principles of orthodox finance are borne in mind not only by disbursing officers but also by sanctioning authorities.
What This Means
Propriety Audit goes beyond checking whether rules were technically followed. Its purpose is to identify improper expenditure, waste of public money, or misuse of government stores even when accounts appear to be in order and no obvious rule violation occurred. As one authority put it, propriety audit extends beyond the formality of expenditure to its 'wisdom, faithfulness and economy.' Both disbursing officers and sanctioning authorities must follow the broad principles of sound financial management.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Propriety Audit examines the wisdom and economy of expenditure, not just rule compliance
- 2It can flag wasteful spending even when no technical irregularity exists
- 3Covers improper expenditure, waste of public monies, and misuse of stores
- 4Applies to both disbursing officers and sanctioning authorities
- 5Extends to the 'wisdom, faithfulness and economy' of spending decisions
Practical Example
A department purchases luxury office furniture worth Rs 15 lakh for a temporary project office that will close in six months. While the purchase followed all procurement rules and the officer had the authority to sanction it, a propriety audit flags this as wasteful expenditure because basic furniture worth Rs 2 lakh would have served the purpose for the short duration.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
How is propriety audit different from regularity audit?▼
Can propriety audit question a sanctioning authority's decision?▼
What does 'even though the accounts may be in order' mean?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.