Para 4.3.23 — MSO (Audit)
Original Rule Text
4.3.23 In the audit of Stock Account, the “Detailed Account of Issues”, which constitutes the second part of the Stock Account, should be examined first. Entries relating to “Issues to Works, etc.” contained in this part should be agreed with the relevant entries in all the
Schedule Dockets of the month, and the remaining issues should be traced from the several accounts (relevant schedule dockets, consolidated contingent bill, etc.) as indicated in the form. If any issue represents the sale or transfer of unserviceable stores, the checks mentioned in paragraph 4.3.8
(iv) supra should be exercised. Part I of the Account should next be checked and it should then be seen that the closing balance of Stock, excluding any items of the sub-head “Manufacture”, which are not debitable against the sanctioned reserve limit of stock, does not exceed that limit.
Note: The quantity accounts of all articles borne on stock, maintained under the rules of Government, have to be scrutinised during local inspection and reconciled with the value accounts.
- Schedule of Miscellaneous Works Advances
What This Means
When auditing the Stock Account, start with Part II (the Detailed Account of Issues). Check that issues to works match the Schedule Dockets for the month, and trace other issues to the correct accounts. If any issue involves sale or transfer of unserviceable stores, apply the checks from Para 4.3.8(iv). Then verify Part I and ensure the closing stock balance (excluding Manufacture items) does not exceed the sanctioned reserve limit.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Start audit with Part II — Detailed Account of Issues
- 2Issues to Works must agree with relevant Schedule Dockets
- 3Sales or transfers of unserviceable stores require special checks per Para 4.3.8(iv)
- 4Part I should be checked after Part II is verified
- 5Closing stock balance must not exceed the sanctioned reserve limit
- 6Quantity accounts are reconciled with value accounts during local inspection
Practical Example
An auditor reviewing a division's stock account first examines the Detailed Account of Issues. They trace an issue of 500 bags of cement to Works and verify it appears in the relevant Schedule Docket. They notice 20 damaged chairs were sold as unserviceable and apply the special checks. Finally, they confirm the closing stock balance of Rs 15 lakh does not exceed the division's sanctioned reserve limit of Rs 18 lakh.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why should Part II be examined before Part I?▼
What happens if the closing stock balance exceeds the sanctioned reserve limit?▼
When are quantity accounts reconciled with value accounts?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.