Para 3.18.4 — MSO (Audit)

MSO (Audit)mso-audit

3.18.4 Project selection: In the course of audit, a risk analysis of the research projects under each programme in the ministry/department is to be undertaken. Projects involving substantial financial inputs and those that were inordinately delayed, terminated or abandoned should be selected for detailed individual scrutiny. Special emphasis should be placed on projects with a significant applied research component.

What This Means

Auditors should conduct a risk analysis of all research projects within each programme and select the most significant ones for detailed scrutiny. Priority should be given to projects with substantial financial investment, those that were significantly delayed, terminated, or abandoned, and projects with major applied research components.

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

Key Points

1Conduct risk analysis of research projects under each programme
2Select high-risk projects for detailed individual scrutiny
3Prioritize projects with substantial financial inputs
4Focus on inordinately delayed, terminated, or abandoned projects
5Give special emphasis to projects with significant applied research component

Practical Example

An auditor reviewing a Department of Biotechnology programme identifies 45 active research projects. Using risk analysis, they select 8 for detailed scrutiny: three with budgets exceeding Rs. 10 crore each, two that were terminated mid-way after spending Rs. 6 crore, two with delays exceeding three years, and one applied research project for developing a malaria vaccine that has consumed Rs. 25 crore with no tangible output yet.

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

Frequently Asked Questions

Why are applied research projects given special emphasis?▼

Applied research is expected to produce practical, usable outcomes (products, technologies, solutions). Unlike basic research where some degree of failure is expected and acceptable, applied research projects should demonstrate tangible results. They also typically involve larger budgets and have clearly defined deliverables that can be objectively assessed.

How should auditors handle projects that were abandoned?▼

Auditors should examine why the project was abandoned, whether the decision was timely or delayed (resulting in wasteful expenditure), whether any useful outcomes were salvaged, and whether proper approval was obtained for abandonment. The total expenditure incurred up to abandonment should be quantified.

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

Para 3.18.4 — MSO (Audit)

Original Rule Text

What This Means

Key Points

Practical Example

Frequently Asked Questions

Related Rules