Para 7.3.67 — MSO (Audit)
Original Rule Text
7.3.67 In all cases where the Audit Reports are placed before the Parliament or the State/ Union Territory Legislature, the Reports, along with the annual accounts and the audit certificate proposed to be issued, should be shown to the Comptroller and Auditor General at the draft stage. Simultaneously, a copy of the draft Audit Report may be issued to the heads of the organisations concerned calling for their comments, if any, within a period of three weeks. It is not necessary to send the draft Reports to Government for comments before they are finalised. Only in rare cases involving very important and/or controversial issues, it may be desirable also to ascertain simultaneously the comments of the Government. Failure to receive the replies of the organisations should be promptly brought to the notice of Government and also taken up with the organisation concerned. It is desirable that replies to important audit observations proposed to be included in the Separate Audit Report are obtained, considered and reflected, wherever necessary, in the relevant paragraphs of the Report. In case the replies of the organisation are not received despite best efforts, the Report may be finalised after including therein a specific comment about the non-receipt of replies and the efforts made to secure responses. After the draft Reports have been duly approved, these will be signed by the Principal Auditor, namely, Accountant General (Audit) or Director General of Audit or Principal Director of Audit, unless the relevant Acts or Rules (as in the case of Damodar Valley Corporation) specifically provide for them to be signed by the
Comptroller and Auditor General and forwarded to Government for being placed before the Parliament/Legislature.
Note: While forwarding the draft Audit Reports on the accounts of such statutory corporations, autonomous Bodies etc. to the headquarters office, information about the audit comments being processed for inclusion in the conventional Audit Report should invariably be furnished.
What This Means
For all entities whose Audit Reports go before Parliament or the Legislature, the draft report and audit certificate must be shown to the CAG at the draft stage. Simultaneously, a copy goes to the organization's head for comments (3-week deadline). Government comments are generally not required, except for rare controversial issues. If the organization does not reply, the report can proceed with a note about the non-response. The report is signed by the Principal Auditor (AG/DG/PD), unless the Act specifically requires the CAG's signature.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Draft report and audit certificate must be shown to CAG at draft stage
- 2Organization heads get a copy simultaneously with a 3-week response window
- 3Government comments are generally not needed — only for rare controversial cases
- 4Non-receipt of replies should be noted in the report; report can still be finalized
- 5The Principal Auditor (AG/DG/PD) signs the report unless the Act requires CAG's signature
- 6Information about related conventional Audit Report comments must be furnished to CAG
Practical Example
The AG prepares a draft Audit Report on a State Finance Corporation and sends it simultaneously to the CAG and the Corporation's Managing Director, giving a 3-week window for comments. After two reminders, the Corporation sends only a partial reply. The AG finalizes the report noting the incomplete response, signs it, and forwards it to the state government for tabling.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Must the draft separate Audit Report be sent to the government for comments?▼
What if the organization does not reply to the draft report?▼
Who signs the separate Audit Report?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.