Para 7.1.19 — MSO (Audit)
Original Rule Text
7.1.19 When it is not possible to treat an objection raised in the course of audit as having been settled by the Accountant General in consultation with the executive authorities and the administrative departments concerned or based on the recommendations of Audit Committees, where constituted, details thereof should be reported to the Finance Ministry or Department for a final decision. If there is a difference of opinion between that Ministry/ Department and the Accountant General, the latter may take further action in terms of the instructions for preparation of the Audit Report contained in Chapter VII.3 and/or, if deemed necessary, seek the advice of the Comptroller and Auditor General.
# Settlement of objections based on Action Taken Reports
What This Means
When an audit objection cannot be settled through normal consultation with executive authorities, departmental officers, or Audit Committees, the matter must be escalated to the Finance Ministry or Department for a final decision. If the Finance Ministry and the Accountant General still disagree, the AG can include it in the Audit Report and seek guidance from the Comptroller and Auditor General (CAG).
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1The Finance Ministry/Department is the escalation point for unresolved audit objections
- 2The Accountant General first tries to settle through direct consultation with executive authorities
- 3Audit Committees, where they exist, are also a settlement mechanism before escalation
- 4Persistent disagreements may lead to inclusion in the Audit Report (Chapter VII.3)
- 5The CAG's advice can be sought when the AG and Finance Ministry cannot agree
Practical Example
A Public Works Department disputes an audit objection about irregular expenditure on a building project. Despite multiple rounds of discussion between the AG's office and the department, no resolution is reached. The AG refers the case to the State Finance Department. When the Finance Department sides with the PWD but the AG remains unconvinced, the matter is included in the Audit Report for the Public Accounts Committee.
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 role of Audit Committees in settling objections?▼
Can the Accountant General override the Finance Ministry's decision?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.