Para 3.7.24 — MSO (Audit)
Original Rule Text
3.7.24 In respect of stores purchases falling under categories
(i) and (ii), the Audit officer of the consignee in India should audit the expenditure against the sanctions issued by the competent authorities in India and should also exercise the checks prescribed in the Chapter (II.4) on the audit of accounts of stores and stock, in relation to the audit of subsidiary accounts of commercial undertakings, as well as of the departments/offices.
What This Means
For stores purchased from abroad under categories (i) — directly from foreign firms on FOB basis — and (ii) — through government procurement agencies like the India Stores Department, London — the Audit Officer of the consignee in India has a dual responsibility. First, they must audit the expenditure against the sanctions issued by competent Indian authorities. Second, they must perform the checks prescribed for audit of stores and stock accounts, covering both commercial undertakings and regular departments/offices.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1The consignee's Audit Officer in India audits expenditure against Indian sanctions
- 2Checks prescribed for stores and stock accounts (Chapter II.4) must be applied
- 3Applies to stores from both direct foreign purchases (category i) and agency purchases (category ii)
- 4Both commercial undertakings and departmental offices are covered
- 5This is in addition to any audit done by overseas audit offices
Practical Example
A research institute in Bangalore receives imported laboratory equipment purchased through the India Supply Mission in Washington. The Accountant General (Audit) for Karnataka audits the expenditure by verifying that the competent authority in India sanctioned the purchase. The auditor also checks the institute's stores ledger to confirm that the equipment was properly received, recorded, and accounted for as per the stores accounting rules in Chapter II.4 of the MSO.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Who is the 'consignee' Audit Officer?▼
What checks are prescribed in Chapter II.4?▼
Does this apply to all overseas purchases?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.