Para 3.4.3 — MSO (Audit)
Original Rule Text
3.4.3 It must be recognised that the five categories of contingencies described in the foregoing paragraph are not necessarily mutually exclusive. There may be instances of Special Contingencies being regulated by scale, or of a bill relating to Scale Regulated Contingencies requiring countersignature. Where a contingent bill falls under two or more classes, the methods of audit prescribed for each of those categories should, as far as possible, be applied to it.
What This Means
The five categories of contingent charges are not mutually exclusive — they can overlap. A Special Contingency might also be governed by a scale, or a Scale Regulated Contingency might require countersignature. When a contingent bill falls under two or more categories, auditors should apply the audit methods prescribed for each applicable category to the extent possible.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Contingency categories can overlap and are not mutually exclusive
- 2A single bill may attract audit procedures from multiple categories
- 3Special Contingencies may also be scale-regulated
- 4Scale Regulated Contingencies may require countersignature
- 5Auditors must apply all applicable audit checks when categories overlap
Practical Example
A government office purchases uniforms for its staff. The cost per uniform is regulated by a prescribed scale (Scale Regulated), but because the total exceeds the drawing officer's powers, it also requires specific sanction from the Head of Department (Special). The auditor applies both checks — verifying the scale is followed AND that proper sanction was obtained.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
How does an auditor identify which categories apply to a particular bill?▼
Does overlapping categorization make audit more difficult?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.