Para 4.3.5 — MSO (Audit)
Original Rule Text
4.3.5 Scrutiny and check of the Monthly Accounts involve mainly the following:
(i) Verification of their proper format and completeness.
(ii) Specific examination of the “Memo of Miscellaneous Cash Receipts Paid into Treasuries” and the Divisional Officer’s certificate of cash balance recorded on the reverse of the monthly accounts to ensure that there are no deviations from prescribed rules.
(iii) Verification of the receipt of the original reports and certificates in support of the Monthly Account for March prescribed in Article 234
(a) of the Account Code, Volume-III, and of the balances certified therein to ensure that these are equal, in the aggregate, to the closing cash balance as reflected in the monthly account.
(iv) Investigation of the causes and implications of any unusual or serious instances of rush of expenditure towards the end of March disclosed in the statement of cheques issued during that month and received along with the accounts of any Division for the month of March. (Article 234
(b) of the Account Code, Volume-III, is of relevance in this context).
# Schedule of Revenue Realised
What This Means
The audit of Monthly Accounts involves four main areas: verifying proper format and completeness, examining the Memo of Cash Receipts and the Divisional Officer's cash balance certificate for rule compliance, verifying receipt of reports and certificates supporting the March Monthly Account and ensuring balances match the closing cash balance, and investigating any unusual rush of expenditure in March through the cheque statement.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Monthly accounts must be in proper format and complete
- 2Memo of Cash Receipts and cash balance certificate must follow prescribed rules
- 3March accounts require original reports and certificates per Article 234(a)
- 4Certified balances must equal the aggregate closing cash balance
- 5Rush of expenditure in March must be investigated via the cheque statement
- 6Article 234(b) governs review of cheques issued in March
Practical Example
An auditor examining the March Monthly Account notices that the statement of cheques shows Rs 45 lakh in cheques issued during the last week of March, compared to an average of Rs 10 lakh per week during the rest of the year. This unusual rush of expenditure is flagged for investigation to determine whether spending was genuinely needed or was done merely to exhaust budget allocations before year-end.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why is the rush of expenditure in March a concern?▼
What certificates support the March Monthly Account?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.