Para 2.1.4 — MSO (Audit)
Original Rule Text
2.1.4 In pursuance of the statutory responsibilities entrusted to the Comptroller and Auditor General, he is the sole authority to decide the nature and extent of audit to be conducted by him or on his behalf. Accordingly, in regard to certain financial transactions of a secret nature, the Comptroller and Auditor General has agreed to modify the scope of audit to the extent prescribed in each case.
What This Means
The Comptroller and Auditor General (CAG) is the sole authority who decides what type of audit to conduct and how deep or wide it should be. No other authority can direct or limit the scope of CAG's audit. However, for certain financial transactions of a secret or classified nature, the CAG has voluntarily agreed to modify the scope of audit to the extent specified for each such case.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1CAG is the sole authority to decide nature and extent of audit
- 2No external authority can override CAG's audit decisions
- 3For secret/classified financial transactions, CAG has agreed to modified audit scope
- 4This power derives from the CAG's statutory responsibilities
Practical Example
The Defence Ministry has a classified procurement program. While the CAG has full authority to audit all government expenditure, for this particular secret program the CAG has agreed to a modified audit procedure -- perhaps examining summary statements rather than individual transaction vouchers -- to protect national security while still maintaining financial accountability.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Can a government department refuse CAG audit?▼
Are secret government expenditures exempt from audit?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.