Regulation 111 — Audit Regulations 2020
Original Rule Text
# 111. Conditions for undertaking audit under Section 20(1)
The conditions for undertaking audit of a body or authority at the request of the President or the Governor of a State or the Administrator of a Union Territory having a legislative assembly under Section 20(1) are the following:
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(1) Audit shall be entrusted to the Comptroller and Auditor General if and as agreed to, by the Comptroller and Auditor General; (2) The arrangement may be reviewed if requested by the Government or Comptroller and Auditor General; (3) The scope, extent and manner of audit shall be decided by the Comptroller and Auditor General; (4) The Comptroller and Auditor General may appoint a primary auditor to conduct audit on his behalf and in accordance with the directions or guidelines issued by him; (5) The Comptroller and Auditor General or any other person so authorised in connection with the audit of accounts of the body or authority shall have the same rights, privileges and authority as the Comptroller and Auditor General has in connection with the audit of accounts of Government; (6) The Comptroller and Auditor General, or an officer so authorised in this regard, will communicate the results of audit to the governing body of the body or the authority. The governing body shall submit a copy of the report to the concerned Government along with its observations. The Comptroller and Auditor General or an officer so authorised in this regard, will also forward a copy of the report to the concerned Government. The Comptroller and Auditor General shall have the right to report the results of audit to Parliament or the State legislature or Union Territory legislature; and (7) Any expenditure incurred by the Comptroller and Auditor General in connection with the audit of the body or authority, including the expenditure incurred for the services of the primary auditor, if any, shall be paid by the body or the authority to the Comptroller and Auditor General.
What This Means
This regulation lays out seven specific conditions under which audit is entrusted to the CAG under Section 20(1). Key conditions include: the CAG must agree to the entrustment; the scope and manner of audit are decided by the CAG alone; the CAG can appoint a primary auditor; results are reported to the governing body, government, and potentially the legislature; and all audit expenses are borne by the audited body.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1CAG must agree to the entrustment — cannot be imposed without consent
- 2Scope, extent, and manner of audit are decided solely by the CAG
- 3CAG can appoint a primary auditor (e.g., CA firm) to conduct audit on its behalf
- 4Results communicated to governing body, forwarded to government, reportable to legislature
- 5All audit expenses including primary auditor costs are paid by the audited body
- 6Arrangement can be reviewed if requested by either government or CAG
Practical Example
The President entrusts audit of a National Skill Development Board to the CAG under Section 20(1). The CAG decides the audit scope will cover both financial compliance and programme performance. A CA firm is appointed as primary auditor under CAG's directions. The Board bears all costs. After audit, findings go to the Board's governing body and the Ministry of Skill Development, and may be included 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
Why does the CAG have sole discretion over the audit scope?▼
Who pays for the audit — the government or the body itself?▼
Can the arrangement be terminated midway?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.