Para 2.4.3 — MSO (Audit)
Original Rule Text
2.4.3 The stores and stock accounts form part of the initial and subsidiary accounts of the departments and audit thereof is consequently conducted locally. The audit of the accounts of the stores and stock shall be directed towards ascertaining that the departmental regulations governing purchase, receipt and issue, custody, condemnation, sale and stock verification of stores are well devised and implemented. Audit should bring to the notice of the Government any important deficiencies in quantities of stores held or any grave defects in the system of control.
- Key areas of audit scrutiny
- Audit of purchase of stores
What This Means
Government departments maintain stores and stock accounts as part of their initial records, and these are audited locally by audit teams. The audit checks whether the rules for buying, receiving, issuing, storing, condemning, selling, and verifying stores are properly designed and actually followed. Any major shortages in stock quantities or serious flaws in the control system must be reported to the Government.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Stores and stock accounts are audited locally as part of departmental records
- 2Audit covers the entire lifecycle: purchase, receipt, issue, custody, condemnation, sale, and stock verification
- 3Departmental regulations governing stores must be well-designed and properly implemented
- 4Important deficiencies in quantities or control systems must be flagged to Government
- 5The audit scope includes both the procedures and the actual ground-level implementation
Practical Example
An audit team visits a PWD division and finds that while the department has rules for stock verification, no physical verification was actually conducted for two years. They also discover that cement stocks shown in records are 200 bags more than what is physically present. The auditors flag both the systemic failure (no verification) and the specific shortage to the Government.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Who conducts the audit of stores and stock accounts?▼
What are the key areas auditors look at during stores audit?▼
What happens if auditors find serious problems with stores?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.