Para 6.1.5 — MSO (Audit)
Original Rule Text
6.1.5 Local Audit may be distinguished from Inspection in that its purpose is to audit the initial accounts maintained in certain Government institutions and offices on the spot. The scope of Local Audit is not confined merely to seeing whether the initial accounts are maintained in proper form or whether the financial rules are properly observed but include a test audit in sufficient detail to verify the accuracy and completeness of accounts.
What This Means
Local Audit is different from Inspection. Its purpose is to audit the initial (original) accounts maintained at specific government offices and institutions on-site. Local Audit does not just check whether accounts are in proper format or rules are followed — it also includes a detailed test audit to verify the accuracy and completeness of the accounts themselves.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Local Audit is conducted on-site at government offices and institutions
- 2Purpose is to audit initial (original) accounts at their source
- 3Goes beyond checking form and rule compliance
- 4Includes test audit in sufficient detail to verify accuracy and completeness
- 5Distinct from Inspection in scope and purpose
Practical Example
A Local Audit party visits a government hospital to audit its initial accounts. Rather than just checking that the cashbook format is correct, they cross-verify a sample of entries against original receipts, invoices, and bank statements to ensure the accounts accurately and completely reflect all financial transactions that took place.
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 Local Audit and Inspection?▼
Does Local Audit only check if forms are filled correctly?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.