Para 2.5.7 — MSO (Audit)
Original Rule Text
2.5.7 By virtue of the provisions of Section 19(2) of the Act, audit of the accounts of Corporations established by or under law made by Parliament is to be conducted by the Comptroller and Auditor General in accordance with the provisions of the respective legislation.
What This Means
Under Section 19(2) of the DPC Act, the CAG is responsible for auditing the accounts of corporations established by or under laws made by Parliament. The audit must be conducted in accordance with the provisions of the respective legislation that established each corporation. This means the CAG follows the specific audit framework laid down in each corporation's governing Act.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Section 19(2) of the DPC Act mandates CAG audit of central statutory corporations
- 2Applies to corporations established by or under laws made by Parliament
- 3Audit must follow the provisions of the respective establishing legislation
- 4Each corporation may have different audit requirements depending on its governing Act
- 5The CAG's audit jurisdiction over central corporations is statutory and mandatory
Practical Example
The Life Insurance Corporation of India is established under the LIC Act, 1956, which has specific provisions about how its accounts are to be prepared and audited. When the CAG audits LIC, the audit team follows the audit framework specified in the LIC Act, which may differ from the Companies Act framework used for government companies. The CAG derives authority from Section 19(2) of the DPC Act for this audit.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Does the CAG audit all statutory corporations?▼
What if the corporation's Act does not mention CAG audit?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.