Para 2.3.10 — MSO (Audit)
Original Rule Text
2.3.10 Where any financial rule or order applicable to the case prescribes the scale or periodicity of recoveries, it will be the duty of the Audit to see as far as possible that there is no deviation therefrom without proper authority. When this check cannot be exercised centrally, a test check may be conducted by local inspections, the aim being to secure the due realisation of particular debts and as well as to ensure that the disregard of rules or defects in procedure are not such as to result in leakage of revenue.
- Examination of outstanding dues
What This Means
When financial rules prescribe specific amounts or intervals for government recoveries, auditors must check that these are being followed without unauthorized deviations. If this verification cannot be done from central records, test checks should be conducted through local inspections. The aim is both to ensure specific debts are recovered and to identify any rule violations or procedural defects that could result in revenue leakage.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Audit must verify compliance with prescribed scales and periodicity of recoveries
- 2Deviations from prescribed recovery schedules need proper authority
- 3Test checks through local inspections supplement central audit
- 4Dual aim: recover specific debts AND identify systemic procedural defects
- 5Focus on preventing revenue leakage from rule violations
Practical Example
Government rules require monthly recovery of house rent from employees occupying government quarters. During a local inspection, auditors test-check 50 employee records and find that in 12 cases, rent recovery was delayed by 3-6 months, and in 3 cases the wrong (lower) rate was applied. Audit raises objections for both the specific under-recoveries and the systemic procedural weakness.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is a 'test check' in this context?▼
What qualifies as 'proper authority' for deviating from prescribed recovery rates?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.