Para 3.23.3 — MSO (Audit)
Original Rule Text
3.23.3 Responsibilities of Audit in regard to workshop accounts are as follows:
(i) It is the duty of audit to verify that stores received in the workshop are properly brought to account and that the issue of stores against work orders is properly controlled.
(ii) In the case of manufacturing operations, the financial results of the year should be scrutinised and, if possible, the cost of manufacture in the workshop compared with the prices of similar articles outside.
(iii) The proforma accounts of the workshops should be scrutinised to verify that they represent an accurate and complete record of all the financial transactions directly or indirectly affecting their activities.
# Refunds of Revenue
What This Means
When auditing government workshops, the auditor has three main responsibilities: verifying that stores received are properly accounted for and issues against work orders are controlled; scrutinising the financial results of manufacturing operations and comparing workshop costs with market prices for similar goods; and checking that proforma accounts accurately and completely record all workshop financial transactions.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Stores receipt and issue must be verified for proper accounting and control
- 2Manufacturing costs should be compared with market prices for similar items
- 3Proforma accounts must accurately capture all financial transactions
- 4Financial results of workshop operations must be scrutinised annually
- 5This ensures workshops operate efficiently and do not waste public resources
Practical Example
A government printing press workshop manufactures 10,000 official diaries. The auditor checks that paper, ink, and binding materials received from suppliers are properly recorded in stores registers, that issues to the diary production line are authorised via work orders, that the cost of producing each diary (Rs 150) is reasonable compared to the market price (Rs 130), and that the proforma accounts capture all labour and material costs.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What are proforma accounts in a workshop context?▼
Why compare workshop costs with external market prices?▼
What happens if stores are not properly accounted for?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.