Para 3.7.25 — MSO (Audit)
Original Rule Text
3.7.25 As regards
(iii) above, the Principal Director of Audit, Indian Accounts in the UK, London, and the Director of Audit, Indian Accounts, Washington, are responsible for the audit of tenders, contracts and payments when the purchases are made through the High Commissioner for India in London and the India Supply Mission, Washington, respectively and the related contracts are entered into in those countries. If the contracts are entered into by Central ministries or the State Governments in India and the payments in the United Kingdom or the United States of America are authorised by the Accounts Officer concerned in India, the Principal Director of Audit, Indian Accounts, London, or the Director of Audit, Indian Accounts, Washington, as the case may be, will audit such payments only with reference to the authorisation. The Audit Officer in India will then be responsible for the audit of sanctions, tenders and contracts. If the contracts are entered into in India and the related payments are also made in the, the Audit Officer in India will be responsible for the audit of the sanctions, tenders, contracts, etc, as well as the connected payments.
# B. Freight Charges
What This Means
This paragraph allocates audit responsibilities for overseas store purchases based on where the contract was signed and where the payment was made. When purchases are made through the High Commissioner in London or India Supply Mission in Washington and contracts are signed abroad, the overseas audit offices audit tenders, contracts, and payments. When contracts are signed in India but payments are made abroad, the overseas office audits only against the authorization while the Indian Audit Officer audits sanctions, tenders, and contracts. When both the contract and payment are in India, the Indian Audit Officer handles everything.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Audit responsibility depends on where the contract was signed and where payment was made
- 2Overseas contracts + overseas payments: overseas audit offices handle full audit
- 3Indian contracts + overseas payments: split responsibility (Indian auditor for sanctions/contracts, overseas for payment authorization)
- 4Indian contracts + Indian payments: Indian Audit Officer handles all aspects
- 5Applies to purchases of food grains, fertilizers, and items through agencies other than India Stores Department
Practical Example
The Ministry of Agriculture contracts a foreign firm in India for fertilizer supply, with payments to be made in US dollars through the India Supply Mission in Washington. The Indian Audit Officer audits the sanction, tender process, and contract terms. The Director of Audit in Washington audits only whether the payment was properly authorized. If the same contract had been signed in Washington, the Washington audit office would have audited the entire transaction including tenders and contract terms.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What does 'audit with reference to the authorization' mean?▼
Which overseas purchases does this paragraph cover?▼
Can audit responsibility shift based on payment arrangements?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.