Para 3.14.1 — MSO (Audit)
Original Rule Text
3.14.1 Remittance transactions are not booked to the final heads of account but are taken to merely adjusting heads. Their clearance may be by payment in cash or by book adjustment under the relevant service or revenue heads of account. The primary objectives of audit of these transactions are:
(i) to verify that the debits and credits have been cleared respectively by corresponding credits and debits within the same or in another audit circle; and
(ii) to scrutinize the balances from month to month in order to ensure their early clearance and to determine the accuracy of the outstandings at the end of the year.
- Main points to be checked in different audit areas
- Audit of transactions included in Remittance Accounts
What This Means
Remittance transactions are not final transactions -- they are adjusting entries that temporarily appear in the accounts and must be cleared by matching credits against debits (or vice versa) within the same or another audit circle. The main audit objectives are to verify that each debit has a corresponding credit and to review monthly balances to ensure timely clearance and accuracy of year-end outstandings.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Remittance transactions are booked to adjusting heads, not final account heads
- 2They are cleared by cash payment or book adjustment under the correct service/revenue heads
- 3Audit must verify that every debit has a corresponding credit (and vice versa)
- 4Monthly balances must be reviewed for early clearance
- 5Year-end outstanding amounts must be verified for accuracy
Practical Example
The Defence Accounts Office in Delhi pays Rs 5 crore on behalf of the Railways for a shared facility. This is booked as a debit under a remittance head in Defence accounts and must appear as a corresponding credit in Railway accounts. The auditor checks that both entries exist and match. At year-end, any unmatched items appear as outstanding balances, and the auditor ensures these are genuine pending transactions and not errors or delays that need investigation.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is an adjusting head?▼
What is an audit circle?▼
Why is timely clearance of remittance transactions important?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.