Para 3.2.8 — MSO

Issues for audit scrutiny Audit of Pay Bills

3.2.8 Audit has to provide assurance that claims preferred are in accordance with the entitlements and rules in force. If, during a sample check in audit, the incidence of incorrect application of financial rules and other irregularities is found to be significant, the approach of substantive testing, namely check of all claims, should be adopted so as to be in a position to conclude that the irregularities are wide-spread and not confined only to one or two individual cases. This approach should then be extended to other auditee units of the Department both horizontally and vertically to gain assurance about extent of the irregularities.