Regulation 120 — Audit Regulations 2020
Original Rule Text
What This Means
This regulation details the Technical Guidance and Support (TGS) arrangement where the CAG provides oversight and quality assurance for audit of local bodies conducted by the state's Local Fund Auditor. Under TGS, the Local Fund Auditor prepares annual audit plans, follows CAG-prescribed procedures, shares inspection reports with the AG (Audit) for quality review, and reports serious irregularities. The AG conducts test-check audits and provides training to local fund audit staff.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Local Fund Auditor prepares annual audit plan by end of March and shares with AG (Audit)
- 2Audit methodology follows state laws AND CAG-prescribed guidelines
- 3AG (Audit) reviews inspection reports for quality improvement suggestions
- 4AG conducts test-check audits of selected PRIs/ULBs for technical guidance
- 5Serious irregularities and fraud must be immediately reported to AG (Audit)
- 6Local Fund Auditor must develop internal controls in consultation with AG
- 7AG provides training and capacity building to local fund audit staff
Practical Example
In Bihar, the Local Fund Auditor prepares an annual audit plan for 2026-27 covering 500 gram panchayats and 50 municipalities, and sends it to the AG (Audit), Bihar by end of March. The AG reviews 50 inspection reports for quality and sends suggestions. The AG also independently test-checks 20 panchayats. When the Local Fund Auditor discovers a Rs 2 crore fraud in a municipal body, they immediately inform the AG (Audit). The AG also conducts training workshops for local fund audit staff.
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 TGS and direct CAG audit of local bodies?▼
Can the AG direct the Local Fund Auditor to audit a specific panchayat?▼
What happens to findings from the AG's test-check audits?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.