(a) The MIR date shall be adjusted in accordance with subdivision (b) or (c) of this section whenever, in accordance with specific statutory or contractual provisions, payment must be preceded by an inspection period or by an audit to determine the resources applied or used by a contractor in fulfilling the terms of the contract. For the purpose of this section, the term audit shall not apply to the routine review or comparison of invoices, purchase orders, receiving reports and other standard documentation.

(b) Except as provided in subdivision (c) of this section, where a contract provides for an inspection or audit period, the MIR date shall be the original MIR date increased by the lesser of:

(c) Whenever in the course of an audit or inspection as described in subdivision (a) of this section, an agency determines that there is a defect in the delivered goods, property or service, or defects in the invoice, or suspected improprieties of any kind, the agency shall no later than the expiration of the statutory or contractual audit or inspection period, notify the contractor of defect or impropriety. In such case, the MIR date shall be the date that the corrected invoice, or goods or services, are delivered or provided, or the date that the impropriety is resolved, except where the agency has failed to notify the contractor of such defect or suspected impropriety prior to the expiration of the audit or inspection period. In such case, the MIR date shall be the MIR date as determined in accordance with the preceding sentence, reduced by the number of days after the expiration of the audit or inspection period which the agency took to notify the contractor of the defect or suspected impropriety.