Para 4.3.1 — MSO (Audit)
Original Rule Text
4.3.1 The audit of monthly accounts and the schedules relating to several suspense and other balanced heads of account consists not only the application of the ordinary procedures of audit of expenditure and receipts to various debit and credit transactions accounted for during the month, but also scrutiny to ensure that:
(i) the accounts have been received in complete and proper form;
(ii) unadjusted balances under the suspense and other balanced heads have been correctly carried forward separately from month to month;
(iii) these balances continue to represent bonafide assets or liabilities of Government capable of being realised or settled, as the case may be; and
(iv) satisfactory action towards such realisation or settlement is being taken by the Divisional Officers.
In conducting this audit, the provisions of the Account Code, Volume-III, and the Financial Rules of Government relating specially to these accounts should be borne in mind.
What This Means
Audit of monthly accounts and schedules for suspense and balanced heads goes beyond the standard expenditure and receipts audit procedures. It additionally requires checking that accounts are complete and in proper form, that unadjusted balances are correctly carried forward month to month, that these balances represent genuine government assets or liabilities, and that the Divisional Officer is actively working to realize assets or settle liabilities. The Account Code Volume III and relevant financial rules must be kept in mind.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Standard audit of debits and credits is supplemented by additional checks for suspense heads
- 2Accounts must be received in complete and proper form
- 3Unadjusted balances must be correctly carried forward each month
- 4Balances must represent genuine assets or liabilities of government
- 5Divisional Officers must be actively pursuing realization or settlement
- 6Account Code Volume III and government financial rules apply
Practical Example
While auditing the 'Miscellaneous Works Advances' suspense head, the Central Audit Party finds an unadjusted balance of Rs 15 lakh that has been carried forward for eight months. The auditor verifies the balance was correctly brought forward from previous months, then investigates whether it represents a genuine advance to a contractor. Finding that Rs 5 lakh relates to an advance given to a contractor who abandoned the project six months ago, the auditor raises an objection that the Divisional Officer has not taken adequate action to recover this amount, questioning whether it still represents a realizable asset.
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 suspense and balanced heads of account?▼
Why is it important to check that balances represent genuine assets or liabilities?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.