Para 7.1.4 — MSO (Audit)
Original Rule Text
7.1.4 The final decision on whether an objection should be pressed or not pursued further rests with the auditor. Ordinarily, except in the cases specified in paragraphs 7.1.17 to 7.1.19, where a transaction requires the authorisation of a higher authority, Audit must insist that such authorisation be obtained; or where a sum of money is recoverable, Audit must insist on its recovery save where the authority to waive recovery has been delegated, or the competent authority has directed that recovery be foregone. However, all objections are not of equal importance and the residuary discretion rests with the Comptroller and Auditor General and with the Accountant General under him to refrain from pressing an individual objection, when there is sufficient assurance that the aim of audit to secure regularity and propriety will be safeguarded in future.
What This Means
The final authority on whether to press or drop an audit objection lies with the auditor. Generally, where a transaction needs higher authorization, Audit must insist it be obtained; where money is recoverable, Audit must insist on recovery unless the competent authority has waived it. However, not all objections are equally important, and the CAG and Accountant General retain discretion to not press an objection if there is sufficient assurance that future regularity and propriety will be maintained.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1The auditor holds the final decision on whether to pursue an objection
- 2Missing authorizations from higher authorities must generally be insisted upon
- 3Recoverable money must be recovered unless the competent authority has formally waived it
- 4The CAG and AG have residuary discretion to refrain from pressing an objection
- 5This discretion is used when future compliance is assured even without pressing the specific objection
Practical Example
A government department spent Rs 2 lakh on office renovation without obtaining the required financial sanction from the Ministry. The auditor raises an objection and insists on ex-post-facto sanction. The department obtains the sanction and also puts in place a new system where all expenditures above Rs 50,000 require pre-approval. The AG, satisfied that future regularity is assured, exercises discretion to settle the objection.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Can anyone override the auditor's decision to press an objection?▼
When can the recovery of money be waived?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.