Para 3.9.3 — MSO (Audit)
Original Rule Text
3.9.3 The scope of integrated audit is consequently much wider. In order to achieve the desired results within a given time frame, it will be necessary, at the outset, to identify the department’s significant areas of activity for detailed examination based on a clear understanding of its organisational structure and characteristics in their totality. The audit objectives in respect of each significant activity should be defined as clearly as possible so as to facilitate the determination of the audit criteria or standards and benchmarks against which the department’s performance can be evaluated for arriving at appropriate audit conclusions. Clarity in the definition of the audit objectives will also ensure that the audit is focussed and concentrates on the more significant aspects of the entity and its operations and thereby avoids wastage of precious audit resources on the less important aspects.
What This Means
Integrated audit has a much wider scope than regular audit. To be effective within a given timeframe, auditors must first identify the department's most significant activities for detailed examination. The audit objectives for each activity should be clearly defined so that appropriate standards and benchmarks can be set for evaluation. Clear objectives also ensure the audit stays focused on important aspects and does not waste resources on less significant areas.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Integrated audit scope is wider than traditional audit approaches
- 2Identify significant activities first, then examine them in detail
- 3Define audit objectives clearly for each significant activity
- 4Establish standards and benchmarks (audit criteria) for performance evaluation
- 5Clear objectives prevent waste of audit resources on less important aspects
Practical Example
For integrated audit of the Fisheries Department, the audit team identifies four significant activities: fish seed production, inland fisheries development, marine fisheries management, and fisherman welfare schemes. For each, they define clear objectives -- for example, for fish seed production, the objective is to assess whether production met demand, whether hatcheries were optimally utilised, and whether seed quality standards were maintained. This focused approach avoids spending time on minor administrative activities.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
How do auditors identify 'significant' activities?▼
What are audit criteria or benchmarks?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.