Para 3.16.6 — MSO (Audit)
Original Rule Text
3.16.6 The primary objectives of certifying the annual accounts are:
(i) to verify whether the accounts prepared are correct and complete in all respects;
(ii) to ascertain whether the systems followed in the compilation of accounts leading to the Finance Accounts and Appropriation Accounts are satisfactory and fault free;
(iii) to examine whether acceptable Government accounting standards for financial reporting and disclosures have been complied with; and
(iv) additionally, in the case of Appropriation Accounts, to verify whether moneys shown in the accounts as having been disbursed were legally available for and applicable to the service or purpose to which they have been charged or applied.
- Audit Procedure
What This Means
Certification of annual accounts serves four primary objectives. First, verify that accounts are correct and complete. Second, check that the compilation systems used to produce Finance Accounts and Appropriation Accounts are reliable. Third, confirm compliance with government accounting standards for reporting and disclosure. Fourth, for Appropriation Accounts specifically, verify that money was legally available for and properly applied to the services or purposes shown.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Verify correctness and completeness of compiled accounts
- 2Assess whether compilation systems are satisfactory and fault-free
- 3Confirm compliance with government accounting standards for reporting and disclosure
- 4For Appropriation Accounts: verify legal availability and proper application of funds
Practical Example
While certifying a state's Finance Accounts, the AG (Audit) discovers that the compilation system failed to capture Rs 30 crore in Treasury transactions due to a software error. This violates the second objective — the system is not fault-free. The AG requires the AG (A&E) to fix the system, recompile the affected statements, and demonstrate corrective measures before certification can proceed.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What does 'legally available for the service' mean in the context of Appropriation Accounts?▼
How is certification different from routine audit?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.