Para 3.20.4 — MSO (Audit)
Original Rule Text
3.20.4 The important source documents that will form the basis of audit scrutiny to evaluate the adequacy of systems are the following:
(i) Organisational Chart.
(ii) Procedural Manuals.
(iii) Delegation of Powers Rules.
(iv) Departmental Accounts Manual.
(v) Accounting Policies and Procedures.
(vi) Budgeting Policies and Procedures.
(vii) Performance Budget.
(viii) Work Plans.
(ix) Technical manual relating to quality specifications.
(x) Internal Audit Reports.
- Main stages of systems audit
What This Means
This para lists the key documents that auditors should examine when conducting a Systems Audit. These source documents help evaluate whether the organization's systems are adequate and well-controlled. They include the organizational chart, procedural manuals, delegation of powers rules, departmental accounts manual, accounting and budgeting policies, performance budget, work plans, technical quality manuals, and internal audit reports.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Organisational Chart shows the structure and reporting lines
- 2Procedural Manuals and Delegation of Powers define how work should be done and by whom
- 3Accounting and Budgeting Policies govern financial management
- 4Performance Budget and Work Plans set targets and expectations
- 5Internal Audit Reports reveal previously identified issues and follow-up actions
Practical Example
Before starting a Systems Audit of a Directorate, the audit team collects the organizational chart to understand reporting relationships, the delegation of powers to know who can sanction what amounts, the departmental accounts manual to understand accounting procedures, and recent internal audit reports to identify areas where problems have already been flagged but may not have been resolved.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What if some of these source documents are not available?▼
Are these the only documents an auditor should review?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.