Regulation 125 — Audit Regulations 2020
Original Rule Text
125. Authority and Purpose
(1) Auditing Standards issued by the Comptroller and Auditor General set out the professional standards of auditing for the Comptroller and Auditor General’s organisation as well as for its personnel. (2) Auditing standards establish the norms applicable to all audit engagements undertaken by the Comptroller and Auditor General. (3) All audit engagements as per the audit mandate of the Comptroller and Auditor General shall be conducted in accordance with Auditing Standards issued by the Comptroller and Auditor General. (4) Auditing standards determine the audit procedures that shall be applied in audit and constitute the criteria or benchmark
(s) against which the quality of audit results is evaluated. (5) Auditing standards apply to all types of audit including financial audit, compliance audit, performance audit and any combination of such audits. (6) Auditing standards shall be periodically updated, revised or modified by the Comptroller and Auditor General in keeping with the applicable international auditing standards, while keeping in view the provisions in the Constitution of India, the Act and other relevant statutes, extant rules and these regulations.
What This Means
This regulation establishes the authority and purpose of the CAG's Auditing Standards. These standards set professional norms for all audit engagements — covering financial, compliance, and performance audits. They define the procedures to be applied and serve as benchmarks for evaluating audit quality. The CAG periodically updates these standards to align with international auditing standards while respecting India's constitutional and legal framework.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Auditing Standards set professional norms for all CAG audit engagements
- 2Apply to ALL audit types: financial, compliance, performance, and combinations
- 3Standards define audit procedures and serve as quality evaluation benchmarks
- 4Periodically updated to align with international standards (INTOSAI/ISSAI)
- 5Must respect Indian Constitution, CAG's Act, and relevant statutes
- 6Issued by the CAG and binding on all personnel
Practical Example
An audit team in the AG (Audit), Gujarat is planning a compliance audit of a central government scheme. The team leader refers to the CAG's Auditing Standards to determine the required procedures for risk assessment, evidence gathering, and documentation. During quality review, the Group Officer evaluates the audit working papers against these standards to ensure completeness and professional rigour.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Are the CAG's Auditing Standards the same as INTOSAI standards?▼
Can an auditor deviate from the Auditing Standards?▼
How often are these standards updated?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.