Para 6.1.2 — MSO (Audit)
Original Rule Text
6.1.2 The primary objectives of inspection are:
(i) to see that the initial accounts from which the accounts rendered by departmental officers are compiled, or on which they are based, are properly maintained in the prescribed format and that financial rules and orders are being adhered to; and
(ii) to test the degree of care exercised over the accuracy of original records by the departmental authorities responsible for maintaining accounts.
This will involve, inter alia, scrutiny of instances of non-adherence to or failure to ensure adherence to the codal provisions and internal control procedures and principles, nonmaintenance of basic and control registers, etc., resulting in fraudulent drawal of pay and allowances and contingent bills. Simultaneously, a test check may be applied to such accounts, vouchers, etc. as are not audited in Central Audit or as cannot be checked adequately except in local audit. The purpose of this test check is to provide the material upon which conclusions in regard to
(i) and
(ii) above may be reached.
What This Means
Local inspection has two primary objectives: first, to verify that original accounts are properly maintained in the prescribed format and that financial rules are being followed; second, to test how carefully departmental authorities maintain the accuracy of original records. This includes checking for non-compliance with codal provisions, weak internal controls, missing registers, and potential fraud in pay, allowances, and contingent bills. Accounts not adequately covered by Central Audit are test-checked during local inspection.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Two primary objectives: verify proper maintenance of accounts and test accuracy of original records
- 2Checks adherence to codal provisions and internal control procedures
- 3Looks for non-maintenance of basic and control registers
- 4Detects fraudulent drawals of pay, allowances, and contingent bills
- 5Test-checks accounts and vouchers not audited in Central Audit
- 6Test check results support conclusions about record-keeping quality and rule compliance
Practical Example
An inspection party visits a Block Development Office and discovers that the BDO has not maintained the Advance Register for the past two years, making it impossible to track outstanding advances. They also find through test-checking of contingent bills (which Central Audit does not cover) that several bills for furniture purchase lack supporting quotations. These findings demonstrate weak internal controls and potential for fraudulent drawals.
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 the difference between Central Audit and Local Audit inspection?▼
What does 'test check' mean in this context?▼
Why is detecting fraudulent drawals specifically mentioned?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.