Para 6.1.12 — MSO (Audit)
Original Rule Text
6.1.12 While preparing the Annual Audit Plan, care should be taken to include, on a regular basis, at least 25 per cent of the transactions from the Personal Ledger/Personal Deposit Accounts of the Drawing and Disbursing Officers being audited. Only amounts booked under Minor Head 106 under Major Head 8443 (relating to disbursements in the previous year's accounts) should be taken into account for this purpose.
What This Means
When preparing the Annual Audit Plan, at least 25% of transactions from the Personal Ledger/Personal Deposit Accounts of the Drawing and Disbursing Officers being audited must be included for review on a regular basis. The calculation is based on amounts under Minor Head 106 of Major Head 8443, which relates to disbursements from the previous year's accounts.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Minimum 25% of PL/PD Account transactions must be included in the Annual Audit Plan
- 2This coverage must be maintained on a regular (ongoing) basis
- 3Only amounts under Minor Head 106 of Major Head 8443 are considered for this calculation
- 4Applies to the Drawing and Disbursing Officers being audited
- 5Ensures adequate scrutiny of personal ledger and deposit transactions
Practical Example
An audit planning officer preparing the FY 2026-27 plan reviews the previous year's Minor Head 106 under Major Head 8443 for 50 DDOs. For a DDO with Rs 2 crore in PL/PD transactions, at least Rs 50 lakh worth of transactions must be selected for audit. She allocates inspection time accordingly to ensure this 25% threshold is met across the board.
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 25% the minimum coverage for PL/PD accounts?▼
What is Major Head 8443?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.