Para 7.3.63 — MSO (Audit)
Original Rule Text
7.3.63 These Reports are expected to contain observations on the following:
(i) All points that vitiate the certification of accounts as representing a true and fair picture of the working and state of affairs of the organisation.
(ii) Utilisation of assistance given by Government – the observations would cover instances of under-utilisation, diversion of assistance to purposes not covered by the sanction, excess release or belated receipt of grants and assistance, etc.
(iii) Non-fulfillment of the intended objectives of the scheme of assistance.
(iv) Cases of avoidable or infractuous expenditure, losses, delays and irregularities in execution of works and schemes, etc.
(v) Omission to initiate remedial action on persistent irregularities.
(vi) Absence of internal controls and checks that reduce the degree of reliability of the accounts, non-maintenance of basic records, delays in recovery of dues or adjustment of advances, etc.
(vii) Inaccuracies in accounts and in classification.
(viii) Overall financial position and necessity for continued dependence on Government assistance.
(ix) Major audit comments pertaining to financial irregularities, losses, failure of objectives, cost and time overruns, etc. noticed in the course of audit.
These are, however, not to be considered as exhaustive.
What This Means
The separate Audit Reports on statutory corporations and autonomous bodies should cover a wide range of issues including: problems that vitiate the 'true and fair' certification, misuse or under-utilization of government assistance, failure to meet scheme objectives, wasteful expenditure, persistent irregularities without remedial action, weak internal controls, accounting inaccuracies, overall financial health, and major financial irregularities found during audit.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Report issues that affect the true and fair certification of accounts
- 2Cover misuse, under-utilization, or diversion of government assistance
- 3Highlight non-fulfillment of intended scheme objectives
- 4Include avoidable expenditure, losses, delays, and execution irregularities
- 5Note absence of internal controls and weak record-keeping
- 6The listed categories are illustrative, not exhaustive
Practical Example
While auditing a state autonomous development corporation, the AG finds that: (1) government grants were diverted to purchase office cars instead of funding skill development programs as intended, (2) basic accounting records were not maintained, and (3) despite repeated audit objections over three years, no remedial action was taken on irregular contractor payments. All three findings are included in the separate Audit Report under the relevant categories.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What types of observations should be included in separate Audit Reports on autonomous bodies?▼
Is the list of reportable items in Para 7.3.63 exhaustive?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.