Para 1.1.9 — MSO (Audit)
Original Rule Text
1.1.9 Section 16 of the Act provides for audit by the Comptroller and Auditor General of all receipts which are payable into the Consolidated Fund of India and of each State and of each Union Territory having a Legislative Assembly. It also requires him to satisfy himself that the rules and procedures in that behalf are designed to secure an effective check on the assessment, collection and proper allocation of revenue and are being duly
observed and to make for this purpose such examination of the accounts as he thinks fit and report thereon.
- Audit of Stores and Stock
What This Means
Under Section 16 of the CAG Act, the CAG must audit all receipts (revenue) going into the Consolidated Fund of India, States, and Union Territories with legislatures. The CAG checks that rules and procedures for assessing, collecting, and properly allocating revenue are well designed and are actually being followed.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Section 16 mandates audit of all government receipts payable into Consolidated Funds
- 2CAG must verify that rules for assessment, collection, and allocation of revenue are adequate
- 3CAG must also check that these rules are being duly observed in practice
- 4CAG can examine accounts in whatever manner deemed fit for this purpose
Practical Example
When auditing a State Commercial Taxes Department, the CAG team checks whether the procedures for assessing GST, collecting payments, and allocating revenue between state and central shares are sound and being properly followed — for instance, whether tax assessments are timely and arrears are pursued effectively.
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 government expenditure?▼
What does receipt audit focus on?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.