Para 2.6.9 — MSO (Audit)
Original Rule Text
2.6.9 Under Sub-section (2) of Section 20, where the audit of accounts of a body or authority has not been entrusted to the Comptroller and Auditor General by law and he is of the opinion that such audit is necessary because a substantial amount has been invested in or advanced to the body or authority by the Central or State Government or by the Government of a Union Territory having a Legislative Assembly, he may propose to the
President or the Governor of the State or the Administrator of the Union Territory, as the case may be, that he may be authorized to undertake the audit. On such proposal, he may be empowered to undertake the audit by the authority concerned.
What This Means
Under Section 20(2), when the CAG believes that a body or authority should be audited because of substantial government investment or advances, even though audit has not been legally entrusted to the CAG, the CAG can proactively propose audit to the President, Governor, or UT Administrator. If the proposal is accepted, the CAG is empowered to undertake the audit.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Section 20(2) allows the CAG to initiate audit proposals (not just respond to requests)
- 2Applies when substantial government money has been invested in or advanced to a body
- 3The CAG proposes audit to President/Governor/UT Administrator
- 4The authority concerned may then empower the CAG to conduct the audit
- 5This is a proactive mechanism for ensuring accountability of public funds
Practical Example
The CAG notices that the Central Government has invested Rs 800 crore in a technology development fund managed by a private trust, but no audit mechanism exists for tracking this investment. The CAG proposes to the President that he be authorized to audit the fund's accounts under Section 20(2). The President agrees, and the CAG begins an audit focusing on how the Rs 800 crore was deployed and what returns it generated for the government.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
How does Section 20(2) differ from Section 20(1)?▼
What qualifies as 'substantial amount' for triggering a Section 20(2) proposal?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.