Para 3.8.12 — MSO (Audit)
Original Rule Text
3.8.12 Preliminary study of the selected scheme is an essential part of the review. The objective is to obtain a more comprehensive insight into the broad picture that was available at the time of initial selection to locate areas and aspects that would require indepth examination. Budget and Plan documents, performance budget of the department, progress reports, administrative reports, reports of periodical appraisal by the departmental officers and nominated external agencies, reports of Working or Study Groups of the Planning Commission, the Public Accounts Committee, Estimates Committee, Bureau of Public Enterprises, etc. would provide the necessary background material about the scheme, its aims and objectives, financial targets and actual expenditure, arrangements for implementation, etc.
What This Means
The preliminary study is an essential step where the audit team gathers a comprehensive understanding of the scheme beyond what was available during initial selection. The team should consult budget and plan documents, performance budgets, progress reports, administrative reports, periodic appraisals by departmental officers and external agencies, and reports from bodies like the Planning Commission, PAC, Estimates Committee, and Bureau of Public Enterprises. This background material reveals the scheme's aims, financial targets, actual expenditure, and implementation arrangements.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Preliminary study provides deeper insight than what was available at initial selection
- 2Multiple document sources must be consulted: budgets, plans, progress reports, appraisals
- 3External evaluations and committee reports are valuable background materials
- 4Study should cover aims, objectives, financial targets, and implementation arrangements
- 5Helps identify areas requiring in-depth examination during the main audit
Practical Example
Before auditing a national skill development scheme, the audit team collects the scheme guidelines from the ministry, five years of performance budget data, quarterly progress reports, an independent evaluation by NITI Aayog, and the PAC's earlier observations on similar schemes. From these, they learn that while financial utilization was 95%, the placement rate of trained youth was only 28% — far below the 70% target. This finding from the preliminary study helps them focus the main audit on effectiveness of training and placement mechanisms.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Is the preliminary study conducted in the office or in the field?▼
What kind of 'external agencies' reports should be consulted?▼
Can the preliminary study lead to dropping a selected scheme from review?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.