Para 3.11.7 — MSO (Audit)
Original Rule Text
3.11.7 While reviewing the closing balances of deposits, Audit should ensure that:
(i) balances in deposit accounts have been correctly carried over from year to year and the correctness of the balance in each account at the close of the year has been acknowledged by the person or body concerned where necessary and practicable; and
(ii) deposits that have remained unclaimed for such period
(s) as may be prescribed by Government in this behalf and are to be credited as revenue receipts of Government have been properly adjusted to the revenue head in the accounts.
- Lapsed Deposits
What This Means
When reviewing year-end closing balances of deposit accounts, Audit must verify two things: first, that balances have been correctly carried forward from one year to the next with acknowledgement from the depositor where practical; and second, that unclaimed deposits that have remained beyond the government-prescribed period have been properly credited to government revenue.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Closing balances must be correctly carried forward from year to year
- 2Balance correctness should be acknowledged by the depositor where practicable
- 3Unclaimed deposits beyond the prescribed period must be credited as government revenue
- 4Both carryover accuracy and lapse compliance are verified
Practical Example
During the annual closing audit, the team finds that a court deposit balance of Rs. 50,000 was carried forward incorrectly -- the previous year's closing balance does not match the current year's opening balance due to a posting error. They also find three deposits unclaimed for over five years that were never lapsed to government revenue, requiring corrective entries.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Must depositors acknowledge their year-end balances?▼
What happens to unclaimed deposits?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.