Para 2.3.7 — MSO

of arrangements for detection/prevention of frauds and other irregularities

2.3.7 It is the primary responsibility of the departmental authorities to see that all receipts due to Government are correctly and properly assessed, realized and credited to Government account. The most important functions of audit are

(i) to see that adequate regulations and procedures have been framed by the Revenue Department to secure an effective check on assessment, collection and proper allocation of taxes; and

(ii) to satisfy itself by adequate test check that such regulations and procedures are actually being adhered to. Audit should also make such examination as it thinks fit with respect to the correctness of the sums brought to account.