Para 3.7.15 — MSO (Audit)
Original Rule Text
3.7.15 Before auditing expenditure on bills for purchases, the Audit Officer should satisfy himself that the sanctions and agreements have been properly audited and bear suitable audit endorsement.
What This Means
Before the Audit Officer examines expenditure on purchase bills, they must first confirm that the underlying sanctions (approvals) and agreements have already been audited. Each sanction and agreement should carry a proper audit endorsement proving it was reviewed. This ensures that no payment is processed against an unapproved or unverified contract.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Sanctions and agreements must be audited before purchase bills are examined
- 2Each sanction/agreement should bear a suitable audit endorsement
- 3This is a prerequisite check before auditing expenditure on purchase bills
- 4Prevents payments against unapproved or unverified contracts
Practical Example
An Audit Officer receives bills from a department for furniture purchases worth Rs 8 lakhs. Before examining whether the bills are arithmetically correct or the rates are proper, she first checks that the purchase sanction order and the supply agreement both carry audit endorsement stamps from previous audit. Finding the agreement lacks any endorsement, she flags it for immediate review before proceeding with the bill audit.
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 an 'audit endorsement' on a sanction or agreement?▼
Can an Audit Officer proceed to audit purchase bills if the agreement has not yet been audited?▼
Why is this pre-check necessary?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.