Para 3.12.1 — MSO (Audit)
Original Rule Text
3.12.1 Government is the custodian of Provident Funds, which form a part of the Public Account in Government Accounts. The objective of audit of Provident Funds is to see that:
(i) the accounts of these Funds are maintained properly in accordance with the rules governing them; and
(ii) accumulations in the Funds are utilised/invested in accordance with the provisions of the relevant Acts.
What This Means
The Government acts as custodian of Provident Funds, which are part of the Public Account. Audit of Provident Funds has two objectives: first, to verify that fund accounts are maintained properly according to their governing rules; and second, to ensure that the accumulated money in the funds is utilised or invested in accordance with the relevant Acts.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Provident Funds are part of the Public Account with Government as custodian
- 2Fund accounts must be maintained in accordance with governing rules
- 3Accumulations must be utilised or invested per relevant Acts
- 4Both proper maintenance and proper investment are audit objectives
Practical Example
An audit team reviews the General Provident Fund accounts maintained by a State Government department. They check whether monthly subscriptions are correctly recorded, interest calculations follow prescribed rates, and the accumulated corpus is invested in authorised instruments as specified under the Provident Fund Act, 1925.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why does the government hold Provident Fund money?▼
What are the two main audit objectives for Provident Funds?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.