Para 3.13.1 — MSO

3.13.1 The primary objective of audit of borrowings of the Government, loans, advances and guarantees given by the Government, operation of the reserves, reserve funds and sinking funds is to ensure that;

(i) the transactions are within such limits, if any prescribed and are in tune with the authority that govern them;

(ii) the transactions are correctly reflected in the detailed accounts;

(iii) the balances relating to these accounts represent amounts which are realisable and there exists a mechanism for periodic confirmation of balances. 3.13.1

(a) The instructions contained in this chapter apply to the following:

(i) Internal and external borrowings of the Union Government including interest payments on such borrowings.

(ii) Open market borrowings and borrowings from the Union Government by the State Governments including interest payments on such borrowings.

(iii) Loans and advances given by the Union and State Governments to quasipublic bodies.

(iv) Contingent liabilities on account of guarantees given by the Government.

(v) Sinking Funds and investments out of such funds.

(vi) Reserves, Reserve Funds and investments out of such funds.

(vii) Suspense Accounts.