Para 3.22.24 — MSO (Audit)
Original Rule Text
3.22.24 The auditor should direct his attention to an examination of the following:
(i) EDP policy and strategic plan;
(ii) administrative structure;
(iii) feasibility study/project report containing proposals, costs and benefits; equipment selection;
(iv) justification for hardware and software;
(v) installation of equipment and adequacy of testing; and
(vi) post-implementation review and costs.
What This Means
When auditing IT acquisitions, the auditor should specifically examine six areas: the EDP policy and strategic plan, the administrative structure, the feasibility study or project report (including costs, benefits, and equipment selection), justification for hardware and software choices, adequacy of installation and testing, and the post-implementation review along with actual costs incurred.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Examine the EDP (Electronic Data Processing) policy and strategic plan
- 2Review the administrative structure governing IT decisions
- 3Scrutinise the feasibility study covering proposals, costs, benefits, and equipment selection
- 4Check justification for specific hardware and software choices
- 5Verify adequacy of installation procedures and testing
- 6Review post-implementation assessment and compare actual costs with estimates
Practical Example
Auditing a state health department's telemedicine project, the auditor asks for the feasibility study and finds it projected Rs 5 crore cost with 80% district coverage in 2 years. Three years later, Rs 8 crore has been spent but only 40% districts are covered. The post-implementation review was never conducted. The auditor flags cost overrun, delayed implementation, and absence of post-implementation review as major findings.
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 a post-implementation review?▼
Why is justification for hardware and software important?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.