Para 2.3.6 — MSO (Audit)
Original Rule Text
2.3.6 Whereas the audit of tax receipts is, in most cases, taken up separately, other departmental receipts are generally audited along with the audit of the expenditure of the department or scheme concerned. Even in respect of departments where a detailed audit of receipts has not been possible, it should be verified in audit in so far as it is possible
from the accounts that
(a) sums due are regularly recovered and checked against demand, and
(b) sums received are duly brought to credit in the accounts.
- Key areas of audit scrutiny
- Audit of regulations and procedures for assessment, collection and refunds
What This Means
While major tax receipts like income tax and GST have dedicated separate audit processes, other departmental receipts (fees, fines, rent, etc.) are usually audited alongside the department's expenditure audit. Even for departments where detailed receipt audit is not feasible, auditors must verify at a minimum that amounts due are being regularly recovered and matched against demands, and that amounts received are properly credited to government accounts.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Tax receipts are often audited separately by dedicated teams
- 2Other departmental receipts are audited alongside expenditure audit
- 3Minimum checks: regular recovery against demand, and proper crediting
- 4Even limited audit must verify amounts received are brought to account
- 5This ensures no revenue stream is completely unaudited
Practical Example
During expenditure audit of a District Education Office, auditors also check receipt items: whether tuition fee recoveries from students in government schools match the demand register, whether examination fees collected are promptly deposited in the treasury, and whether rental income from department properties is being credited to the correct revenue head.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why are some receipts audited alongside expenditure rather than separately?▼
What does 'checked against demand' mean?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.