Para 7.1.7 — MSO (Audit)
Original Rule Text
7.1.7 It is not necessary to report individual cases of serious financial irregularities to the Comptroller and Auditor General unless his intervention is deemed desirable; the Accountant General may, however, seek his advice in cases of doubt or difficulty. All serious and interesting cases of fraud or forgery, and cases indicating the need for changes in procedure should, however, be reported at once for his information.
Note: All communications to the Comptroller and Auditor General for advice should contain
(a) a clear statement of the point at issue;
(b) the views of the Accountant General thereon;
(c) details of the action, if any, he has already taken and of that proposed to be taken. where these may be necessary, copies of the relevant correspondence and documents should be enclosed to the reference to explain or clarify the issues involved.
# Reports on Defalcations and Losses
What This Means
Individual cases of financial irregularity normally do not need to be reported to the CAG unless his intervention is genuinely needed. However, all serious or interesting cases of fraud, forgery, and cases that indicate the need for procedural changes must be reported to the CAG immediately. When seeking the CAG's advice, the AG must provide a clear statement of the issue, his own views, and details of any action already taken.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Routine financial irregularities do not need to be escalated to the CAG
- 2The AG may seek CAG advice in cases of doubt or difficulty
- 3All serious fraud, forgery, and procedure-change cases MUST be reported to the CAG at once
- 4Communications to the CAG must include: clear issue statement, AG's views, and action already taken/proposed
- 5Supporting correspondence and documents should be enclosed when needed
Practical Example
During audit of a district treasury, the AG's team discovers a systematic forgery of salary bills worth Rs 10 lakh, involving fabricated employee identities. Since this is a serious case of forgery indicating a need to change bill-processing procedures, the AG immediately reports the matter to the CAG with a full case summary, his recommendation for procedural reform, and copies of the forged documents.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What kinds of cases must be reported to the CAG immediately?▼
What should a communication to the CAG contain?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.