Regulation 110 — Audit Regulations 2020
Original Rule Text
110. Audit under Section 20 of the Act
(1) Under sub-section (1) of Section 20 of the Act, the audit of accounts of any body or authority, the audit of which has not been entrusted to the Comptroller and Auditor General by or under any law made by Parliament may, subject to the proviso contained in Section 20(3), also be entrusted 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, to the Comptroller and Auditor General after consultation with him and on such terms and conditions as may be agreed to between him and the concerned Government. (2) As per sub-section (2) of Section 20 of the Act, the Comptroller and Auditor General may propose to the President or the Governor of a State or the Administrator of a Union Territory having a legislative assembly, as the case may be, that he may be authorised to undertake the audit of accounts of a body or authority, the audit of which has not been entrusted to him by law, if he is of the opinion that such audit is necessary because a substantial amount has been invested in or advanced to that body or authority by Government, and the President or the Governor or the Administrator, as the case may be, may, subject to proviso contained in sub-section (3), empower the Comptroller and Auditor General to undertake the audit of accounts of that body or authority.
What This Means
Under Section 20 of the CAG's Act, the audit of bodies or authorities not already under the CAG's audit can be entrusted to the CAG by the President, Governor, or UT Administrator. This can happen either at the government's initiative (Section 20(1)) or at the CAG's proposal (Section 20(2)). In both cases, the entrustment requires public interest justification, prior consultation with the CAG, and the body being given a reasonable opportunity to make representations.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Section 20(1): Government can entrust audit of any body to the CAG after consultation
- 2Section 20(2): CAG can propose audit if substantial government investment/loans are involved
- 3Section 20(3): Entrustment requires public interest satisfaction and opportunity for body to object
- 4Terms and conditions of audit must be agreed between CAG and the government
- 5This is the broadest mechanism for bringing non-statutory bodies under CAG audit
Practical Example
The central government has invested Rs 2,000 crore in a technology development body not currently under CAG audit. The CAG, noting the substantial public investment, proposes under Section 20(2) that the President authorize an audit. The President, satisfied that it is in the public interest, empowers the CAG after giving the body an opportunity to make representations on the proposal.
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 Section 20(1) and Section 20(2)?▼
Can the body refuse the CAG audit?▼
Does this section cover societies and trusts receiving government grants?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.