Para 3.20.3 — MSO (Audit)
Original Rule Text
3.20.3 The general principles governing Systems Audit are as follows:
(i) In order to locate the deficiencies in any system, it is necessary to check the chain of movements in each procedure forming part of the operational or financial activity. Since a long chain of movements causes delay, the necessity for each link in a chain should be analysed and unnecessary links identified.
(ii) Similarly, procedures that have in-built delays should be examined with a view to ascertaining how best they can be streamlined. Causes of departures from or special relaxations of the prescribed procedures should be analysed. The analysis will indicate where the system and its linkages are getting extended or overloaded and how the resultant strains may be eliminated.
(iii) It has also to be examined whether action on important points has been initiated at sufficiently high levels of the hierarchy so as to produce meaningful results.
(iv) In addition, procedures and/or records which appear to be redundant or superfluous should be identified for elimination.
# Source documents
What This Means
This para outlines the four general principles of Systems Audit. First, each procedure chain should be analyzed to identify and eliminate unnecessary steps that cause delays. Second, procedures with built-in delays should be streamlined, and reasons for departures from prescribed procedures should be investigated. Third, important decisions should be taken at appropriately high levels in the hierarchy. Fourth, redundant records and procedures should be identified and eliminated.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Analyze each procedural chain and remove unnecessary links causing delays
- 2Streamline procedures with built-in delays and investigate departures from prescribed processes
- 3Ensure important actions are initiated at sufficiently senior levels
- 4Identify and eliminate redundant or superfluous procedures and records
Practical Example
An auditor examines the file movement for sanctioning a training programme and finds it passes through 8 levels of approval, including 3 levels that merely forward the file without adding value. The auditor recommends eliminating these unnecessary links to reduce the average processing time from 45 days to 20 days, while ensuring the substantive approvals remain at the appropriate authority level.
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 'unnecessary links in a chain' mean?▼
Why should departures from prescribed procedures be analyzed?▼
What are examples of redundant records?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.