Regulation 126 — Audit Regulations 2020
Original Rule Text
# 126. Elements of public sector auditing
The elements of public sector auditing are as follows and as detailed in the Comptroller and Auditor General’s Auditing Standards and specifically provided for, as applicable, in the Guidelines for Compliance Audits, Performance Audits and Financial Audits issued by the Comptroller and Auditor General.
(a) The three parties (auditor, responsible party and intended users)
(b) Subject matter, criteria and subject matter information
Regulations on Audit and Accounts 2020 67
(c) Types of engagement (attestation and direct reporting)
(d) Confidence and assurance in public-sector auditing and levels of assurance.
What This Means
This regulation identifies the four core elements of public sector auditing as defined in the CAG's Auditing Standards. These are: the three parties involved (auditor, responsible party, and intended users); the subject matter, criteria, and subject matter information; the types of engagement (attestation and direct reporting); and the levels of confidence and assurance in audit.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Three parties: auditor (CAG), responsible party (government/entity), intended users (legislature/public)
- 2Subject matter: what is being audited; criteria: standards against which it is measured
- 3Two engagement types: attestation (verifying entity's claims) and direct reporting (auditor's own assessment)
- 4Levels of assurance: reasonable (high) vs. limited (moderate) confidence
- 5Detailed in CAG's guidelines for Compliance, Performance, and Financial Audits
Practical Example
In a performance audit of the Pradhan Mantri Awas Yojana, the three parties are: the CAG (auditor), the Ministry of Housing & Urban Affairs (responsible party), and Parliament (intended user). The subject matter is housing construction outcomes, the criteria are scheme guidelines and targets, and it is a direct reporting engagement where the CAG independently assesses performance rather than just verifying the Ministry's claims.
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 attestation and direct reporting?▼
Who are the 'intended users' of CAG audit?▼
Why do assurance levels matter?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.