Para 2.6.8 — MSO (Audit)
Original Rule Text
2.6.8 The provisions contained in Section 20 of the Act are in the nature of enabling ones covering bodies and authorities which do not come under the audit of the Comptroller and Auditor General. Under Sub-section (1) ibid, the Comptroller and Auditor General is required to audit the accounts of any such body or authority, if requested so to do by the President or the Governor of a State or the Administrator of a Union Territory having a Legislative Assembly, as the case may be. Such a request can, however, be made only after consultation with the Comptroller and Auditor General. For conducting the audit, the Comptroller and Auditor General will have right of access to the books and accounts of the body or authority concerned. The Sub-section envisages that the terms and conditions on which he will undertake the audit may be mutually agreed upon between the Comptroller and Auditor General and the Government concerned. The standard terms and conditions laid down in this behalf by the Comptroller and Auditor General, which are also applicable to audit undertaken by him under Sub-section (3) of Section 19 of the Act, vide paragraph 2.6.2, are contained in the Annexure to this chapter.
What This Means
Section 20 is an enabling provision for auditing bodies not otherwise covered by the CAG. If the President, Governor, or UT Administrator requests the CAG to audit such a body (after consulting with the CAG), the CAG is required to do so. The CAG gets full right of access to the body's books and accounts. The terms and conditions for the audit are mutually agreed upon, with standard terms prescribed by the CAG provided in an annexure.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Section 20 covers bodies not otherwise under CAG audit
- 2Audit is triggered by request from President/Governor/UT Administrator
- 3Prior consultation with CAG is mandatory before making the request
- 4CAG gets right of access to books and accounts
- 5Terms and conditions are mutually agreed between CAG and government
- 6Standard terms and conditions are prescribed (same as Section 19(3) audits)
Practical Example
A large cooperative bank handling Rs 2,000 crore of government deposits is not covered under any mandatory CAG audit section. The Governor of the state, after consulting the CAG, requests an audit under Section 20. The CAG agrees and audit is conducted under the standard terms — including appointment of a primary auditor, five-year initial engagement, and the right to report findings to the state legislature.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Can the CAG refuse a Section 20 audit request?▼
How does Section 20 differ from Section 14?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.