Para 3.17.5 — MSO (Audit)

MSO (Audit)mso-audit

3.17.5 For some payments of miscellaneous nature, e.g. remittance vouchers, cheques, discount vouchers etc. nothing more than a minimum audit can be prescribed generally; this minimum consists in verifying that there is a sufficient voucher for the payment and that there is sufficient authority for making it.
- Issue of Audit Certificate

What This Means

For certain miscellaneous payments like remittance vouchers, cheques, and discount vouchers, only a basic minimum level of audit can be prescribed. This minimum audit involves verifying that a proper voucher exists for every payment and that there is sufficient authority or sanction backing each payment.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

1Miscellaneous payments require at least a minimum audit
2Every payment must have a sufficient supporting voucher
3Every payment must have proper authorization/sanction
4Applies to remittance vouchers, cheques, discount vouchers, etc.
5Detailed scrutiny may not be practical for such routine payments

Practical Example

While auditing a World Bank project office, the audit party encounters a stack of 200 remittance vouchers for small miscellaneous payments. Rather than conducting a full detailed scrutiny of each, they perform a minimum audit — checking that each voucher exists, is properly filled out, and has the required authorization from a competent authority. They find 15 vouchers lacking proper sanction and flag these.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

Why is only minimum audit prescribed for these payments?▼

These are routine, low-value transactions where a full detailed audit would be disproportionate to the amounts involved. The minimum check ensures basic controls are in place — that payments are documented and authorized — without consuming excessive audit resources.

Can the auditor do more than the minimum if they suspect irregularities?▼

Absolutely. If the auditor notices anything suspicious during the minimum check — such as unusually high amounts, frequent payments to the same party, or missing vouchers — they should conduct a more detailed examination of those specific transactions.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Para 3.17.5 — MSO (Audit)

Original Rule Text

What This Means

Key Points

Practical Example

Frequently Asked Questions

Related Rules