Para 2.5.23 — MSO (Audit)
Original Rule Text
2.5.23 The Accountants General concerned are required to issue separate Audit Reports (SARs) in respect of statutory corporations of which the Comptroller and Auditor General is the sole auditor. The Reports should contain comments on the accounts as well as on their review, which should indicate the operational performance as well as the working results.
- Chapter–6 Audit of Non-Commercial Autonomous Bodies and Non-Government Institutions
- Statutory provisions
What This Means
For statutory corporations where the CAG is the sole auditor, the concerned Accountants General must issue Separate Audit Reports (SARs). These reports serve a dual purpose: they contain comments on the accuracy and propriety of the accounts, and they include a review of the corporation's operational performance and working results. This gives a complete picture of both the financial health and the operational effectiveness of the corporation.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Separate Audit Reports (SARs) are required for statutory corporations under sole CAG audit
- 2SARs are issued by the concerned Accountants General
- 3Reports must contain comments on the accounts (financial accuracy)
- 4Reports must include a review of operational performance and working results
- 5This dual approach covers both financial and operational dimensions
Practical Example
The Accountant General issues a Separate Audit Report for a state electricity board (a statutory corporation). The report not only certifies the accounts but also reviews the board's operational performance -- transmission and distribution losses of 28% against the national target of 15%, a revenue deficit of Rs 500 crore, and failure to implement energy efficiency programs approved three years ago. This comprehensive report helps the Legislature assess both the financial and operational health of the corporation.
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 a Separate Audit Report (SAR)?▼
Why do statutory corporations get separate reports instead of being included in the main CAG report?▼
What is the difference between 'comments on accounts' and 'review' in a SAR?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.