Para 2.6.1 — MSO (Audit)
Original Rule Text
2.6.1 Provisions relating to audit of Government Corporations are contained in Subsections (2) and (3) of Section 19 of the Act. Sub-section (2) provides that the duties and powers of the Comptroller and Auditor General in relation to audit of the accounts of corporations (not being companies) established by or under law made by Parliament shall be performed and exercised by him in accordance with the provisions of the respective legislation. The word ‘Legislation’ used in this Sub-section refers not only to parent acts relating to the corporations but also to rules and regulations framed by competent authorities by virtue of the powers vested in them under the relevant Acts of Parliament. The responsibility of the Comptroller and Auditor General for audit under this Subsection is only in respect of those corporations that are specifically required to be audited by him in terms of the applicable legislation.
What This Means
The CAG's audit powers over government corporations come from Section 19 of the DPC Act. Sub-section (2) covers corporations established by parliamentary law -- the CAG must audit them following the provisions of their respective legislation, which includes not just the parent Acts but also rules and regulations made under those Acts. However, the CAG is only required to audit those specific corporations whose governing legislation mandates CAG audit.
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) and 19(3) of the DPC Act govern CAG's corporation audit
- 2For central corporations, audit follows the respective establishing legislation
- 3'Legislation' includes parent Acts plus all rules and regulations made under them
- 4CAG audit responsibility exists only for corporations where the governing law specifically requires it
- 5The scope of 'legislation' is broad -- covering rules and regulations, not just the parent Act
Practical Example
A newly established central research corporation is created under an Act of Parliament. The Act states that 'the accounts of the Corporation shall be audited by the Comptroller and Auditor General.' Based on this provision and Section 19(2) of the DPC Act, the CAG takes up the audit. The audit team reviews not just the parent Act but also the financial rules and accounting regulations framed by the corporation's board under powers given by the Act, to determine the full audit framework.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What if a corporation's governing Act does not mention CAG audit?▼
Does 'legislation' mean only the Act of Parliament?▼
What about state-level corporations?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.