Para 2.6.33 — MSO (Audit)
Original Rule Text
2.6.33 The procedure for settlement of objections incorporated in a Separate Audit Report is also contained in the Manual of Instructions for Audit of Autonomous Bodies.
- ANNEXURE (Referred to in Paragraph 2.6.8) Standard Terms and Conditions for Acceptance of Audit
1. The Comptroller and Auditor General may suggest the appointment of a primary auditor to conduct audit on his behalf and on the basis of directions/guidelines issued by him. Where such an Auditor is appointed, the fees will be payable by the institution to that auditor. Where such an auditor is not appointed, expenditure incurred by the Comptroller and Auditor General in connection with the audit will be payable to him by the institution. 2. In addition to the audit to be conducted by the primary auditor where so appointed, Comptroller and Auditor General will have the right to conduct a test check of the accounts and to comment on and supplement the report of the primary auditor. 3. The Comptroller and Auditor General or any person appointed by him in connection with the audit shall have the same rights, privileges and authority as the Comptroller and Auditor General has in connection with the audit of Government accounts. 4. The result of audit will be communicated by the Comptroller and Auditor General or any person appointed by him to the Governing body which shall submit a copy of the report along with its observations to the Government. The Comptroller and Auditor General will also forward a copy of the report directly to the Government. 5. The audit is entrusted to the Comptroller and Auditor General in public interest for a period of five years’ accounts from the year ……………… to ……………… in the first instance, subject to a review of the arrangements thereafter. 6. The scope, extent and manner of conducting audit shall be as decided by the Comptroller and Auditor General. 7. The Comptroller and Auditor General will have the right to report, at his discretion, the results of audit to the Parliament/ Legislature.
- SECTION–III Supplementary Audit Instructions
Chapter–1
- Central Audit
# Introduction
What This Means
The procedure for settling audit objections raised in a Separate Audit Report is also documented in the Manual of Instructions for Audit of Autonomous Bodies. This paragraph also contains the standard terms and conditions that the CAG prescribes when accepting audit assignments, covering key aspects like the right to appoint a primary auditor, right of test check, rights equivalent to government audit, reporting procedures, a five-year initial engagement period, and the right to report to Parliament.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Objection settlement procedures for Separate Audit Reports are in the Autonomous Bodies Manual
- 2Standard terms include CAG's right to appoint a primary auditor and conduct test checks
- 3CAG retains the same rights and privileges as in government account audits
- 4Initial audit engagement is for five years, subject to review
- 5CAG has discretion to report findings to Parliament/Legislature
- 6Scope, extent, and manner of audit are determined solely by the CAG
Practical Example
When the CAG agrees to audit a Public Sector University under Section 20, the terms and conditions require the university to: pay audit fees to the appointed primary auditor, allow CAG to conduct test checks on top of the primary audit, share all books and records on demand, accept that the audit period is five years initially, and acknowledge that CAG can report findings to Parliament at his discretion.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is a 'primary auditor' in CAG audit?▼
Why is the initial engagement period set at five years?▼
Who bears the cost of the audit?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.