Para 7.3.33 — MSO (Audit)
Original Rule Text
7.3.33 In dealing with cases of irregular, excessive or wasteful expenditure and losses, efforts should be made to quantify their extent.
What This Means
When reporting on cases of irregular, excessive, or wasteful expenditure and financial losses, the Audit Report must make every effort to quantify the financial impact in rupee terms. Putting a number on the irregularity or loss makes the finding concrete, enables comparison across cases, and helps the Legislature and Government assess the severity and prioritise corrective action.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Irregular, excessive, or wasteful expenditure must be quantified wherever possible
- 2Financial losses should be expressed in specific rupee amounts
- 3Quantification makes findings concrete and actionable
- 4It enables comparison across cases and prioritisation of corrective action
Practical Example
During audit of a road construction project, the auditor finds that the contractor used substandard materials. Instead of simply noting 'substandard materials were used,' the paragraph quantifies the impact: 'The contractor used M-20 grade concrete instead of the prescribed M-30 grade on a 12 km stretch, resulting in excess payment of Rs 2.8 crore (being the price difference between the two grades). The road section developed cracks within 18 months, and the estimated cost of relaying is Rs 8.5 crore.'
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What if the exact financial impact cannot be determined?▼
Why is quantification important for the Legislature?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.