Para 3.22.22 — MSO (Audit)
Original Rule Text
3.22.22 Acquisition of computer facilities may include:
(i) acquisition of hardware involving
(a) the setting-up of a completely new installation;
(b) enhancement of the central processor;
(c) enhancement of peripherals;
(d) addition/replacement of a specific equipment; and
(e) introduction of several small computers.
(ii) acquisition of software involving
(a) general software associated with changes in hardware, including the introduction of a new operating system;
(b) specific purpose software; and
(c) ‘off the shelf' application software.
What This Means
Acquisition of computer facilities falls into two main categories: hardware acquisition (setting up new installations, upgrading processors, adding peripherals, replacing equipment, or introducing small computers) and software acquisition (general software tied to hardware changes, specific purpose software, or off-the-shelf application software). Auditors must understand these categories to properly evaluate procurement decisions.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Hardware acquisition includes new installations, processor upgrades, peripheral enhancements, and equipment replacement
- 2Introduction of several small computers (decentralisation) is also a form of hardware acquisition
- 3Software acquisition includes general software (associated with hardware changes), specific purpose software, and off-the-shelf packages
- 4New operating systems are categorised under general software associated with hardware changes
- 5Both hardware and software acquisitions must be reviewed by audit
Practical Example
A Revenue Department proposes to acquire 200 desktop computers for taluk offices (hardware — introduction of small computers), upgrade its central server (hardware — processor enhancement), and purchase a commercial property tax assessment package (software — off-the-shelf). The auditor reviews each category separately: whether the 200 desktops are justified by workload, whether the server upgrade matches the increased load, and whether the off-the-shelf software meets the department's specific needs or if customisation costs will balloon.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is the difference between specific purpose software and off-the-shelf software?▼
Why does the auditor need to understand these categories?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.