Regulation 12 — Audit Regulations 2020
Original Rule Text
12. Engagement of external agency or expert
The Comptroller and Auditor General may, where considered relevant and necessary, use the work of internal auditors, other auditors and experts. The Comptroller and Auditor General may also utilize specialised skills from external sources in carrying out an audit or accounts task or learning from best practices. In all such cases experts may be associated to provide knowledge or carry out specific tasks.
(b) However, Audit shall be responsible for the opinions formed, or the conclusions reached, or the recommendations made in its report on the basis of the work of the external agency or expert.
What This Means
The CAG can use the work of internal auditors, other auditors, and external experts when relevant. External agencies or experts with specialized skills may be engaged for specific audit or accounts tasks. However, the CAG's organization remains fully responsible for all opinions, conclusions, and recommendations in its reports — even when based on external expert work.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1CAG can leverage work of internal auditors, other auditors, and experts
- 2External specialists can be engaged for specific audit or accounts tasks
- 3CAG can also learn from best practices through external engagement
- 4CRITICAL: Audit responsibility for opinions and conclusions stays with the CAG
- 5External expert work does not transfer responsibility — CAG owns the final report
Practical Example
The AG (Audit) is conducting a performance audit of a large IT project in the Ministry of Electronics. Lacking deep technical expertise, the AG engages an external IT consultant to assess the project's technical architecture. The consultant's findings feed into the audit report, but the AG's team independently verifies the conclusions and takes full responsibility for the observations and recommendations in the final report.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Does engaging an external expert compromise audit independence?▼
Can the audited entity challenge findings by saying they were based on an external expert?▼
Who pays for external expert engagement?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.