Audit of Stores Accounts should be conducted in accordance with the programme laid down in the Secret Memorandum under Stores Audit keeping in view the general principles enunciated in paras 2.4.1 to 2.4.10 of MSO (Audit) (Second Edition), Chapter-5 of New Audit Norms 2003, Chapter XVII of Railway Audit Manual, the rules contained in the Indian Railway Code for the Stores Department (Vol. I & II) and the instructions/amendments issued by ADAI(Rlys) from time to time.

The audit of the accounts of the stores shall be directed towards ascertaining that the departmental regulations governing purchase, receipt and issue, custody, condemnation, sale and stock verification of stores are well devised and implemented. Purchases of stores examined in audit to ascertain that the purchase have been made in the most economical manner in

Accordance with the rules, regulations and orders issued by the Railway Board. Audit must see that the requirements have been assessed on a realistic basis and funds are available for the procurement. It is also to be seen that the stores procured are of approved quality and specifications. The system of open competitive tender should be adopted for purchases from contractors or suppliers, the purchase being made only from the lowest tenderer unless there are recorded reasons for not doing so.

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