Para 3.8.4 — MSO (Audit)
Original Rule Text
3.8.4 The audit coverage should be at least 25 per cent of both the expenditure and the number of administrative units involved. The total size of the sample will vary in different reviews depending upon the objectives, the basis of the targeted coverage, etc. For instance, the sample size in respect of the Command Area Development Agency (CADA) or the Drought Prone Area Programme (DPAP), this could be determined with reference to the total command or drought prone area sought to be covered in hectares; similarly, the total population of Scheduled Tribes could form the basis in respect of the Tribal Area Sub-Plan.
# Aspects to be covered and source documents
What This Means
When conducting a performance audit, the minimum audit coverage should be at least 25% of both the total expenditure and the number of administrative units involved in the programme. The actual sample size will vary depending on the nature of the scheme -- for example, for an area-based programme, the sample might be based on hectares covered, while for a tribal welfare programme, it could be based on the tribal population.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Minimum audit coverage is 25% of expenditure and 25% of administrative units
- 2Sample size varies depending on the scheme's objectives and basis of coverage
- 3The sampling basis should match the scheme's design (area, population, beneficiaries, etc.)
- 4Both financial and physical coverage should meet the 25% threshold
- 5The sample must be representative of the programme's overall scope
Practical Example
For a review of the Command Area Development Authority (CADA) programme covering 100,000 hectares across 8 districts, the audit team selects a sample covering at least 25,000 hectares (25%) across at least 2 districts. They also ensure that the expenditure in their sample districts represents at least 25% of the total programme expenditure during the review period.
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 25% the minimum coverage requirement?▼
Can the sample size be more than 25%?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.