Para 3.9.18 — MSO (Audit)
Original Rule Text
3.9.18 Integrated audit should comprehensively and in a focussed manner comment on the quality of internal control exercised by the department at the Secretariat and
Directorate levels as well as by its field units in the spheres of financial management, programme management and personnel management. For this purpose, Audit will need to ascertain whether
(a) adequate control mechanisms have been prescribed;
(b) these are appropriate and adequate; and
(c) such controls as are available are in fact operative and functioning.
# Accountability aspects
What This Means
Integrated audit must comprehensively assess the quality of internal controls at all levels of the department -- Secretariat, Directorate, and field units -- across financial management, programme management, and personnel management. Auditors need to determine three things: whether adequate control mechanisms have been prescribed, whether they are appropriate for the department's needs, and whether these controls are actually being followed in practice.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Internal control assessment is a key component of integrated audit
- 2Examine controls at Secretariat, Directorate, and field unit levels
- 3Cover financial management, programme management, and personnel management
- 4Check if adequate control mechanisms have been prescribed
- 5Verify whether prescribed controls are actually operative and functioning
Practical Example
Auditing the Revenue Department, auditors examine internal controls at three levels. At the Secretariat, they find no mechanism to track policy implementation. At the Directorate, the internal audit wing has not submitted a report in 3 years. At field offices (Tehsils), surprise inspections are mandated quarterly but only 2 of 50 Tehsildars conducted them. While rules prescribe monthly reconciliation of revenue collections, only 30% of offices comply, and the Directorate has no system to enforce compliance.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What are the three aspects of internal control that audit examines?▼
What is the difference between having controls and having functioning controls?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.