Para 1.1.6 — MSO (Audit)
Original Rule Text
1.1.6 Section 13 of the Act requires the Comptroller and Auditor General to audit all transactions of the Union, of the States and of the Union Territories having a Legislative Assembly, relating to the Contingency Funds and Public Accounts and to audit all trading, manufacturing, profit and loss accounts and balance sheet and other subsidiary accounts kept in any department of the Union or of a State or a Union Territory. This Section also enjoins on the Comptroller and Auditor General the duty to report on the accounts, expenditure or transactions so audited by him.
- Audit of Grants and Loans to various Bodies and Authorities
What This Means
Under Section 13 of the CAG Act, the CAG must also audit all transactions related to Contingency Funds and Public Accounts of the Union, States, and Union Territories with legislatures. Additionally, the CAG audits all trading, manufacturing, profit and loss accounts, balance sheets, and subsidiary accounts maintained by any government department. The CAG is required to report on all such audited accounts.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1CAG audits Contingency Fund and Public Account transactions
- 2Commercial accounts (trading, manufacturing, P&L, balance sheets) of government departments are also audited
- 3Applies to Union, States, and Union Territories with Legislative Assemblies
- 4CAG must report on all accounts, expenditure, and transactions audited
Practical Example
A government-run printing press maintains manufacturing accounts showing cost of paper, ink, labor, and revenue from printing jobs. The CAG audits these commercial accounts just like any other government expenditure, checking the profit and loss statements and balance sheets for accuracy and proper accounting.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Does the CAG only audit Consolidated Fund expenditure?▼
What are commercial accounts in government?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.