Regulation 106 — Audit Regulations 2020
Original Rule Text
106. Reporting of results of audits other than financial audit of accounts
The results of other audits including compliance and performance audits of a Government corporation shall be reported in accordance with Regulation 136. Audit reports of the Comptroller and Auditor General are laid before the respective legislature. No comments shall, however, be included in the inspection reports and audit reports except after giving due opportunity to the corporation and the Government to offer their explanation on the matters proposed to be commented upon.
What This Means
For audits other than financial audit — such as compliance audits and performance audits — the results are reported through the CAG's audit reports laid before the legislature, as per Regulation 136. Critically, no comments can be included in inspection reports or audit reports without first giving the corporation and the government a fair opportunity to explain their position on the proposed comments.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Compliance and performance audit results follow Regulation 136 reporting procedures
- 2CAG audit reports are laid before the respective legislature
- 3Due process is mandatory: entity must get a chance to respond before comments are included
- 4Both the corporation AND the government must be given the opportunity to explain
- 5This applies to inspection reports as well as final audit reports
Practical Example
The AG (Audit) conducts a performance audit of the National Highways Authority of India's toll collection system. Before including any comment about revenue leakage in the inspection report, the AG sends the draft observations to both NHAI and the Ministry of Road Transport, giving them an opportunity to explain. Only after considering their responses are the comments finalised for inclusion in the CAG's report to Parliament.
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 the difference between financial audit and compliance/performance audit reporting?▼
Can the CAG include comments without waiting for the entity's reply?▼
Are compliance and performance audit findings as serious as financial audit qualifications?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.