Para 1.1.8 — MSO (Audit)
Original Rule Text
1.1.8 Section 20 is another enabling provision of the Act in terms of which audit of the accounts of certain bodies or authorities, not covered by Section19 or whose audit has not been entrusted by or under any law made by Parliament to the Comptroller and Auditor General can be entrusted to him. Under Sub-section (1) of Section 20, the Comptroller and Auditor General has the duty to audit the accounts of such authority or body if he is requested in this behalf, after prior consultation, by the President or the Governor of State/Administrator of a Union Territory having a Legislative Assembly, on such terms and conditions as may be agreed upon between him and the Government concerned. For the purpose of audit, the Comptroller and Auditor General has the right of access to the books and accounts of the authority or body. Sub-section (2) of Section 20 empowers the Comptroller and Auditor General to propose to the President or the Governor of a State or the Administrator of a Union Territory having a Legislative Assembly to authorize him to undertake the audit of the accounts of any body or authority, not entrusted to him for audit, if he is of the opinion that such audit is necessary because a substantial amount has been invested in or advanced to the body or authority by the Government concerned. Audit under Sub-sections (1) and (2) of Section 20 of the Act can be entrusted to the Comptroller and Auditor General only in public interest and only after giving a reasonable opportunity to the concerned authority or body to represent in respect of the proposal for such audit.
# Audit of Receipts
What This Means
Section 20 of the CAG Act allows the audit of bodies or authorities whose accounts are not already covered under other provisions. The President, Governor, or UT Administrator can request the CAG to audit such bodies (after consulting the CAG), or the CAG can propose such audit when substantial government investment is involved. In all cases, the body must be given a reasonable opportunity to make representations before the audit is entrusted.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Section 20 is a residual provision for auditing bodies not covered by Sections 14, 15, or 19
- 2Audit can be requested by the President/Governor/Administrator after consulting CAG
- 3CAG can also propose audit where substantial government investment exists
- 4Audit is only entrusted in public interest and after giving the body an opportunity to represent
- 5Terms and conditions are agreed between the CAG and the concerned government
Practical Example
A state-level sports authority set up by executive order (not a statutory corporation) receives Rs 200 crore investment from the state government. The CAG proposes to the Governor that its accounts should be audited because of the substantial public funds involved. After consulting the CAG and hearing the authority's response, the Governor authorizes the audit.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Can the CAG audit any body or authority?▼
What qualifies as a 'substantial amount' of government investment for Section 20?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.