Para 4.2.8 — MSO (Audit)
Original Rule Text
4.2.8 As far as possible, Supplementary Accounts of the year should be dealt with in audit in the same manner as the Monthly Account. It should, however, be borne in mind that there can be no cash transactions in these accounts nor any actual transactions relating to stock and that transfer transactions are permissible only to the extent indicated in Articles 199 and 236 of the Account Code, Volume III.
- Current Review
What This Means
Supplementary Accounts submitted at year-end should be audited in the same manner as regular Monthly Accounts. However, auditors must remember that Supplementary Accounts cannot contain cash transactions or actual stock transactions. Transfer transactions in Supplementary Accounts are only permissible to the extent specified in Articles 199 and 236 of Account Code Volume III.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Supplementary Accounts are audited like regular Monthly Accounts
- 2No cash transactions are allowed in Supplementary Accounts
- 3No actual stock transactions can appear in these accounts
- 4Only limited transfer transactions are permissible per Account Code Articles 199 and 236
Practical Example
At the end of the financial year, a PWD division submits a Supplementary Account to adjust certain inter-divisional transfers and final classifications. The Central Audit Party auditor, while reviewing it, notices a cash payment entry of Rs 50,000 to a contractor. He raises an objection because Supplementary Accounts cannot contain cash transactions — this payment should have been processed through the regular March monthly account. He also verifies that the transfer entries conform to the specific types allowed under Articles 199 and 236.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is a Supplementary Account?▼
Why are cash and stock transactions prohibited in Supplementary Accounts?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.