Para 6.1.3 — MSO (Audit)
Original Rule Text
6.1.3 An Inspecting Audit Officer is not expected merely to confine himself to routine audit and inspection. He should avail of this opportunity to assist and advise the departmental officers and accountants on matters affecting accounts, budget, etc, or the
financial regularity of transactions. He may even offer suggestions having a bearing on the economic utilisation of public moneys and is expected to do so in all cases of superfluous clerical work connected with accounts and audit. There are various directions in which an intelligent Inspecting Officer can find scope for his inquiries. For instance, he may find that there are chronic delays in a Public Works Division either in measuring work done or in making payments after measurements have been taken, and it may reasonably be presumed that such delays lead to enhancement of rates. He may notice that no attempt is made to encourage competition amongst contractors, or that the arrangements for entering into contracts for works or supplies are otherwise defective and Government possibly do not receive full value for the payments made. An examination of the authorised Schedules of Rates, or their comparative analysis, may reveal that the data forming the basis of cost estimates of works for sanction of the competent authority are not so satisfactory as to secure the most economical results. He may observe peculiar features of the revenue receipts or expenditure of the division that may be suggestive of possible leakage of revenue, of untapped sources of revenues, or of inadequate attention to economic considerations.
What This Means
An Inspecting Audit Officer should go beyond routine checking of accounts. They should proactively advise departmental officers on financial matters, suggest ways to use public money more efficiently, and look for issues like payment delays, lack of competition among contractors, inflated cost estimates, or revenue leakages. The goal is to make audit a constructive, value-adding exercise rather than a mechanical tick-box process.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Inspecting Officers must go beyond routine audit and offer constructive financial advice
- 2Look for chronic delays in measurements or payments that may inflate contractor rates
- 3Check whether competition among contractors is encouraged and contracts are properly structured
- 4Examine Schedules of Rates to verify cost estimates lead to economical outcomes
- 5Identify possible revenue leakages, untapped revenue sources, or wasteful expenditure
Practical Example
During inspection of a PWD division, the Inspecting Officer notices that payments to contractors are consistently delayed by 3-4 months after measurements. This delay has led contractors to quote higher rates to compensate for the uncertainty. The officer flags this in the report and recommends streamlining the payment process to bring down costs.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Is the Inspecting Officer limited to checking whether numbers in accounts are correct?▼
Can the Inspecting Officer comment on how contracts are awarded?▼
What kind of revenue issues should the officer look for?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.