Para 2.5.12 — MSO (Audit)
Original Rule Text
2.5.12 The local audit of Central Government companies, statutory corporations and other autonomous bodies functioning on commercial lines is conducted by the concerned Principal Directors of Commercial Audit and Ex-officio Members, Audit Board. The State Accountants General concerned are, on the other hand, responsible for the audit State Government companies, corporations and departmentally managed commercial undertakings.
- Key areas of audit scrutiny
- Audit of Government Companies
What This Means
The audit of central government companies, statutory corporations, and autonomous bodies operating commercially is handled by the Principal Directors of Commercial Audit and Ex-officio Members of the Audit Board. For state-level entities, the respective State Accountants General are responsible for auditing state government companies, corporations, and departmentally managed commercial undertakings.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Central government commercial entities are audited by Principal Directors of Commercial Audit
- 2These officers also serve as Ex-officio Members of the Audit Board
- 3State government companies and corporations are audited by State Accountants General
- 4Departmentally managed commercial undertakings at state level also fall under the State AG
- 5The division of responsibility follows the Centre-State ownership structure
Practical Example
A newly recruited audit officer learns that the audit of Bharat Heavy Electricals Limited (a central PSU) is handled by the Principal Director of Commercial Audit at the CAG headquarters, while the audit of the Karnataka State Road Transport Corporation is conducted by the Accountant General of Karnataka. This clear division ensures each entity is audited by the appropriate authority based on its ownership.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Who audits a company owned by both the central and state government?▼
What is the Audit Board?▼
Does this arrangement cover non-commercial government bodies too?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.