Para 2.6.3 — MSO (Audit)
Original Rule Text
2.6.3 The audit of bodies and authorities not falling under Section 19 of the Act is governed by Sections 14, 15 and 20. The terms ‘Body’ and ‘Authority’ used in these Sections or Constitution have not been defined therein. However, ‘Authority’ has been interpreted to mean a person or body exercising power or command, while ‘Body’ has been interpreted to mean an aggregate of persons, incorporated or unincorporated. The terms ‘body’ or ‘authority’ used in Sections 14, 15 and 20 of the Act will thus include companies, corporations, etc. and it is open to take up audit of the accounts of a company or corporation, not covered by Section 19 of the Act, under Section 14 or Section 20, if the conditions specified in them are fulfilled.
# A. Audit under Section 14
What This Means
Bodies and authorities not covered under Section 19 of the DPC Act can still be audited by the CAG under Sections 14, 15, or 20. The terms 'body' and 'authority' are broad — 'authority' means any person or entity exercising power, and 'body' means any group of persons, whether incorporated or not. This means even companies and corporations not covered by Section 19 can be audited under Section 14 or 20 if the specified conditions are met.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Sections 14, 15, and 20 govern audit of bodies not falling under Section 19
- 2'Authority' is broadly interpreted as any person or entity exercising power
- 3'Body' includes any aggregate of persons, incorporated or unincorporated
- 4Companies and corporations outside Section 19 can be audited under Section 14 or 20
- 5Conditions specified in the relevant section must be fulfilled
Practical Example
A private trust registered under the Societies Registration Act receives Rs 50 lakhs annually from the Central Government. Although it is not a government company (Section 19), the CAG can audit it under Section 14 because the government grant exceeds Rs 25 lakhs and constitutes more than 75% of its total expenditure. The trust is both a 'body' (aggregate of persons) and receives substantial government funding.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why are the terms 'body' and 'authority' not defined in the DPC Act?▼
Can a body be audited under multiple sections simultaneously?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.