Para 2.6.2 — MSO

2.6.2 Under Sub-section (3) of Section 19 of the Act, the Governor of a State or the Administrator of a Union Territory having a Legislative Assembly can entrust, in public interest, the audit of the accounts of a corporation established by law made by the State/Union Territory Legislature to the Comptroller and Auditor General after prior consultation with him and after giving reasonable opportunity to the corporation to make representation with regard to the proposal for such audit. This Sub-section does not provide for settlement of terms and conditions but it is in the mutual interest of the Government and the autonomous bodies that the terms and conditions are settled in respect of audit as in the case of audit under Section 20(1) of the Act (see paragraph 2.6.8 below). It is to be noted that audit of a corporation established by a State or Union Territory law and not of a corporation established under a State or Union Territory law can be entrusted to the Comptroller and Auditor General under Section 19(3) of the Act. Section 19-A of the Act, inserted by the Amendment Act of 1984, makes it obligatory for the Comptroller and Auditor General to submit his reports relating to the accounts of a Government company or a corporation subject to audit under Section 19 to the Government

(s) concerned and for the latter to lay such reports before the Parliament or the State or Union Territory Legislature, as the case may be.