Para 2.5.18 — MSO (Audit)
Original Rule Text
2.5.18 While examining the audit report of statutory auditor, it should, as far as possible, be seen that mention of any important defects or irregularities has not been omitted and that the report does not reveal any important point that would need to be further investigated.
- D. Submission of Reports to Parliament/Legislature
What This Means
When reviewing the statutory auditor's report, the CAG's team must check that no important defects or irregularities have been omitted from the report. They must also verify whether the report contains any significant points that need further investigation. Essentially, the CAG is performing quality control over the statutory auditor's work to ensure completeness and thoroughness.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1CAG scrutinizes statutory auditor's report for completeness
- 2Important defects or irregularities should not have been omitted
- 3Any significant points needing further investigation must be identified
- 4This is a quality check on the statutory auditor's work
- 5Ensures that the statutory auditor has fulfilled their responsibilities thoroughly
Practical Example
While reviewing the statutory auditor's report of a government shipping corporation, the CAG's Commercial Audit team notices that the auditor has not mentioned a Rs 25 crore contract dispute that is pending in arbitration, nor has there been any comment on the company's failure to create a depreciation reserve as required. The CAG's team flags these omissions and may issue supplementary comments or direct further investigation into these matters.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What happens if the CAG finds that the statutory auditor has omitted important issues?▼
Can the CAG take action against a statutory auditor for poor quality work?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.