Para 3.16.19 — MSO

B. Responsibility for laying down Principles of Classification

A. Audit of Classification 3.16.19 Classification of transactions should be scrutinised in audit to verify that:

(i) the major, minor and detailed heads of account mentioned in the paid vouchers are authorised heads;

(ii) the expenditure has been classified according to the provisions made in the annual financial statement approved by the Parliament/Legislature and is in accordance with the provisions of Rules 22 et seq of the Form of Accounts of the Union and States (Basic) Rules;

(iii) no expenditure has been classified as 'charged' on the Consolidated Fund of India, of the State or of the Union Territory, as the case may be, except in accordance with the terms of the Constitution, and conversely that no expenditure that should be 'charged' has been classified as 'voted'; and

(iv) expenditure which should have been classified in the 'Capital' section of the account has not been classified incorrectly in the 'Revenue' section and vice versa.