Regulation 143 — Audit Regulations 2020
Original Rule Text
143. Follow up action on systemic faults or high risks pointed out by Audit
Where Audit points out systemic faults or identifies high risks, the department should take appropriate action to address these faults and mitigate the risks so identified.
What This Means
When audit identifies systemic faults (recurring problems in processes or systems) or high risks in a department's operations, the department is obligated to take appropriate corrective action. This is not just about fixing individual cases — the department must address the underlying systemic issues and mitigate the identified risks to prevent recurrence.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Departments must act on systemic faults identified by audit, not just individual observations
- 2High-risk areas flagged by audit require mitigation measures from the department
- 3The focus is on root-cause correction, not just fixing symptoms
- 4Inaction on systemic issues may lead to repeated audit observations and escalation
- 5This applies to all types of audit — financial, compliance, and performance
Practical Example
A performance audit of the Public Distribution System in Odisha reveals that the same type of diversion of food grains is occurring across multiple districts due to weak monitoring at the fair price shop level. Rather than just addressing the individual cases of diversion, the Food and Consumer Welfare Department must overhaul its entire monitoring system — perhaps by implementing electronic point-of-sale devices, surprise inspections, and real-time inventory tracking — to address the systemic vulnerability.
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 difference between a systemic fault and an individual audit observation?▼
Is there a specific timeline for the department to act on systemic faults?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.