Regulation 10 — Audit Regulations 2020
Original Rule Text
# 10. Participation in Management Committees
Auditors should not ordinarily become members of management committees, the deliberations of which result in executive decisions in matters of establishment, administration, budget allocation, project selection, project execution etc. In case of any exceptions to the above, the approval of Deputy Comptroller and Auditor General, incharge of Personnel, shall be mandatory
Regulations on Audit and Accounts 2020 11
prior to acceptance of Memberships of any such Committee or participating in its discussions.
If advice is to be given, it should be conveyed as audit advice or recommendation based on available information and acknowledged clearly as such. Such audit advice or recommendation would not take away the right of the auditors to audit and make observations related to the issues on which advice was rendered.
What This Means
Auditors should generally not join management committees that make executive decisions on matters like staff, administration, budgets, or projects. If an exception is needed, the Deputy CAG (Personnel) must give prior approval. When auditors do provide advice, it must be clearly labelled as 'audit advice or recommendation' — and giving such advice does not take away the CAG's right to audit those same matters later.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Auditors must NOT ordinarily sit on management committees that take executive decisions
- 2Exceptions require prior mandatory approval from Deputy CAG (Personnel) before joining or participating
- 3Any advice given must be explicitly labelled as 'audit advice or recommendation'
- 4Providing audit advice does NOT compromise the right to audit those same issues later
- 5This safeguards auditor independence — the cornerstone of credible public audit
Practical Example
The Ministry of Railways invites a senior audit officer to join a Project Selection Committee for new rail lines. Before accepting, the officer must obtain written approval from the Deputy CAG (Personnel). If approved and the officer provides input, it should be recorded as 'audit advice.' The CAG can still audit the project selection decisions later without any conflict of interest being raised.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why can't auditors freely join management committees?▼
What happens if an auditor gives advice and later audits the same matter?▼
Does this apply to technical advisory committees too?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.