Para 6.1.20 — MSO (Audit)
Original Rule Text
6.1.20 The results of local audit and inspections should be set forth in an inspection report consisting of the following parts:
- Part I
(a) Introductory
(b) Outstanding objections in brief from previous reports
(c) Schedule of persistent irregularities.
- Part II
Section A Major irregularities that are likely to materialise into draft paragraphs of the Audit Report and cases of system failure.
Section B Irregularities which, though not major, are required to be brought to the notice of higher authorities and followed up by the Accountant General and instances of recoveries to be effected or regularized.
# Part III
Test Audit
Note containing minor irregularities, to which a schedule of items settled on the spot should be attached. The procedural irregularities in respect of which the head of the office has held out assurances about following correct procedure in future should be noted in this Schedule.
What This Means
The findings from local audit and inspections must be documented in an Inspection Report with three parts. Part I includes an introduction, a summary of outstanding objections from previous reports, and a schedule of persistent irregularities. Part II is divided into Section A (major irregularities likely to become Audit Report paragraphs and system failures) and Section B (significant irregularities for higher authorities and outstanding recoveries). Part III is a Test Audit Note covering minor irregularities, with an attached schedule of items settled on the spot.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Inspection Report has three distinct parts with specific purposes
- 2Part I: Introduction, outstanding objections from previous reports, persistent irregularities
- 3Part II Section A: Major irregularities potential for Audit Report draft paragraphs and system failures
- 4Part II Section B: Significant irregularities for higher authorities, recoveries to be effected
- 5Part III: Test Audit Note for minor irregularities with schedule of on-the-spot settlements
- 6Procedural irregularities where the head of office gives assurance go in the settlement schedule
Practical Example
After inspecting a District Treasury, the audit party prepares the Inspection Report. Part I notes 5 outstanding objections from the 2024 report. Part II Section A contains a major finding about Rs 45 lakh in fictitious pension payments — a potential Audit Report paragraph. Section B lists 8 cases of delayed remittance to the consolidated fund. Part III contains 15 minor procedural lapses (like late posting in the cash book) with 6 items already settled on the spot after the Treasury Officer agreed to follow correct procedures.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What determines whether an irregularity goes in Part II Section A vs Section B?▼
What does 'settled on the spot' mean?▼
Why are persistent irregularities from previous reports highlighted in Part I?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.