Para 2.3.9 — MSO (Audit)
Original Rule Text
2.3.9 Audit of receipts will be regulated mainly with reference to the statutory provisions as judicially interpreted or financial rules or orders applicable to the particular receipts involved. If the test check reveals any defects, lacunae or loopholes in the provisions, rules or orders, the department’s attention should be drawn to the advisability of these being suitably amended.
# Audit of periodicity of recoveries
What This Means
Receipt audit is primarily guided by the applicable statutory provisions (as interpreted by courts), financial rules, and government orders. If during test checks the auditors discover defects, gaps, or loopholes in the existing rules themselves that could lead to revenue leakage, they should alert the department and recommend that the rules be suitably amended to close these gaps.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Receipt audit is guided by statutory provisions and judicial interpretations
- 2Financial rules and government orders also form the audit benchmark
- 3Audit should identify defects and loopholes in existing rules
- 4Department should be advised to amend rules to close gaps
- 5Proactive approach to preventing revenue leakage through rule improvement
Practical Example
While auditing land revenue collection, auditors discover that the existing rules do not specify a time limit for converting agricultural land to commercial use after payment of conversion fees. Some landowners exploit this gap to delay conversion indefinitely while using the land commercially. Audit recommends the department amend the rules to include a mandatory conversion timeline and penalties for non-compliance.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What does 'as judicially interpreted' mean?▼
Can audit directly amend rules?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.