Para 2.6.10 — MSO (Audit)
Original Rule Text
2.6.10 The entrustment of audit to the Comptroller and Auditor General under either of these two Sub-sections of Section 20 is subject to two pre-conditions: the President or the Governor of the State or the Administrator of the Union Territory, as the case may be, should be satisfied that it is expedient so to do in the public interest; and a reasonable opportunity should have been given to the body or authority concerned to represent with reference to the proposal.
# Audit Objectives and Scope
What This Means
When the CAG's audit is entrusted under Section 20 of the DPC Act, two conditions must be met: first, the President (for central bodies), Governor (for state bodies), or UT Administrator must be satisfied that the audit is in the public interest; and second, the body or authority being audited must have been given a reasonable opportunity to make representations about the proposed audit before it is imposed.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Two pre-conditions must be satisfied before audit entrustment under Section 20
- 2The President/Governor/UT Administrator must be satisfied it is in the public interest
- 3The body or authority must be given reasonable opportunity to represent against the proposal
- 4Both conditions are mandatory -- neither can be skipped
- 5This ensures due process before imposing CAG audit on non-government bodies
Practical Example
The Central Government proposes to have the CAG audit a large charitable trust that received Rs 50 crore in government grants. Before the President can authorize the audit, the trust is given formal notice and 30 days to submit its objections. The trust argues it already has an independent chartered accountant audit. After considering the trust's representation and the public interest (given the size of the grant), the President authorizes the CAG audit.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What constitutes 'public interest' for this purpose?▼
Can the body prevent CAG audit by making strong representations?▼
Is this a one-time authorization or does it need renewal?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.