Para 2.3.12 — MSO (Audit)
Original Rule Text
2.3.12 Ordinarily, Audit will see that the internal procedures adequately secure correct and regular accounting of demands, collections and refunds, that no amounts due to Government remain outstanding in its books without sufficient reason and that the claims are pursued with due diligence and are not abandoned or reduced except with adequate justification and with proper authority.
What This Means
Audit must verify that the department's internal procedures properly handle the full cycle of government revenue: raising demands, collecting payments, and processing refunds. Audit checks that no government dues remain outstanding without good reason, that claims are pursued diligently, and that no claim is abandoned or reduced without proper justification and authorization from the appropriate authority.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Internal procedures must secure correct accounting of demands, collections, and refunds
- 2No government dues should remain outstanding without sufficient reason
- 3Claims must be pursued with due diligence
- 4Claims cannot be abandoned or reduced without adequate justification
- 5Proper authority is required before any claim is reduced or abandoned
Practical Example
Audit examines the internal revenue system of a State Transport Department that collects road tax. They find that demand notices for 200 pending road tax cases were generated but never sent to vehicle owners due to incorrect address records. Audit flags the inadequacy of the address verification system and the failure to diligently pursue these outstanding demands totalling Rs 12 lakh.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What constitutes 'sufficient reason' for outstanding dues?▼
Who can authorize the abandonment of a government claim?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.