Para 2.6.18 — MSO

Procedure for taking up audit 2.6.18 Section 14(2) of the Act empowers the Comptroller and Auditor General to audit, with the prior approval of the President or Governor of a State or the Administrator of a Union Territory having a Legislative Assembly, the receipts and expenditure of any body or authority where the grants or loans to such body or authority from the Consolidated Fund

(s) is not less than rupees one crore in a financial year. Similar provision to obtain prior authorisation exists in Section 20(2) of the Act in regard to the audit to be undertaken by the Comptroller and Auditor General at his initiative of the accounts of any body or authority. Again, Sub-section (2) of Section 15 of the Act envisages such prior authorization for the Comptroller and Auditor General to have access to the books and accounts of a corporation for the purpose of his scrutiny under Sub-section (1) of Section 15, if its accounts are audited by another agency under the provisions of the law establishing the corporation. Suggestions for taking up audit under Section 14(2) or

Section 20(2) of the Act or asking for right of access to the books of the concerned institution under Section 15(2) of the Act may be made subject to the specific or general approval of the Comptroller and Auditor General, especially in cases where:

(i) control by the sanctioning agency is inadequate;

(ii) the state of accounts is known to be unsatisfactory;

(iii) there are chronic delays in finalisation, submission or audit of accounts;

(iv) there are no arrangements for audit by an agency outside the control of the institutions;

(v) institutions undertaking manufacturing or trading activities suffer persistent losses; and

(vi) Government stands guarantee for large amounts though the amount of its own grant, loan or investment, as the case may be, is small.