Para 3.8.11 — MSO (Audit)
Original Rule Text
3.8.11 Review of the selected project/scheme is to be planned and carried out in an effective manner. Various phases of scheme reviews can be broadly categorised as follows:
(i) Preliminary study of the selected project/scheme.
(ii) Development of Audit Plan.
(iii) Execution of the Audit Plan, including substantive testing and adoption of other detailed audit procedures to gather evidence.
(iv) Drafting of the Review Report and draft recommendations.
(v) Approval of Review.
- Preliminary Studies
What This Means
A performance audit review of a selected project or scheme should be planned and executed through five structured phases: preliminary study of the scheme, development of an audit plan, execution of the plan including substantive testing and evidence gathering, drafting of the review report with recommendations, and obtaining approval of the review. This systematic approach ensures thorough coverage and quality findings.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Five phases: preliminary study, audit plan, execution, drafting, and approval
- 2Preliminary study provides foundational understanding of the scheme
- 3Audit plan defines scope, coverage, objectives, resources, and timeline
- 4Execution includes substantive testing and detailed audit procedures for evidence gathering
- 5Review report must include draft recommendations
Practical Example
The Accountant General's office selects a rural housing scheme for performance review. In phase 1, the team studies the scheme guidelines, budgets, and progress reports. In phase 2, they develop an audit plan covering 10 of 30 districts, with a 4-month timeline. In phase 3, audit parties visit the selected districts, test samples of beneficiary records, and inspect constructed houses. In phase 4, the Group Officer drafts a report with findings on cost overruns and quality issues, including recommendations. In phase 5, the Accountant General approves the review for inclusion in the Audit Report.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why is a preliminary study necessary before audit planning?▼
What is 'substantive testing' in the execution phase?▼
Who approves the final review?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.