Para 2.5.21 — MSO (Audit)
Original Rule Text
2.5.21 The statutory provisions relating to audit of government companies and the related instructions of the Comptroller and Auditor General in regard to audit by his representatives and scrutiny of the statutory auditors’ reports are also applicable to the deemed government companies.
What This Means
Deemed government companies are subject to the same audit framework as regular government companies. This means the statutory provisions regarding audit, the CAG's instructions for audit by his representatives, and the procedures for scrutinizing the statutory auditors' reports all apply equally to deemed government companies. This ensures that entities classified as deemed government companies receive the same level of audit scrutiny.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Same statutory audit provisions apply to deemed government companies as to regular government companies
- 2CAG's instructions for audit by his representatives are equally applicable
- 3Procedures for scrutiny of statutory auditors' reports also apply
- 4Deemed government companies receive the same level of audit oversight
- 5This ensures consistent audit standards across both categories of government companies
Practical Example
A company in which the government holds only 30% equity is classified as a deemed government company under Section 619-B because it receives substantial government funding. The CAG appoints its statutory auditor, issues directions for the audit, and conducts supplementary audit -- exactly the same process followed for regular government companies where the government holds 51% or more equity.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is the practical difference between a government company and a deemed government company in terms of audit?▼
How does a company become a 'deemed government company'?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.