Regulation 129 — Audit Regulations 2020
Original Rule Text
# 129. Audit Planning
(1) Audit Planning involves
(a) the identification of audit assignments, relating to one or more auditable entities, as part of the annual and/or longer-term audit plan; such assignments may be financial, compliance or performance audits, or combine all or some aspects thereof.
(b) Planning individual audit assignments
(2) The development of the annual or longer-term audit plan is based on the assessment of risk and other factors, as may be determined by Comptroller and Auditor General.
(3) The planning of individual audit assignments broadly involves:
(a) Obtaining an understating of the nature of the entity/ programme/ activity etc being audited;
(b) Defining the audit scope, objectives and approach;
(c) Defining the nature, timing and extent of the audit procedures, and timelines
Regulations on Audit and Accounts 2020 69
(4) The detailed procedures for the preparation of the annual or longer-term plan, and planning of individual audit assignments shall be specified by the Comptroller and Auditor General.
What This Means
Audit planning operates at two levels: identifying audit assignments as part of annual and longer-term plans, and planning individual audit assignments in detail. The annual plan is based on risk assessment and other CAG-determined factors. Individual audit planning involves understanding the entity, defining scope and objectives, determining procedures and timelines, and allocating resources. The CAG specifies the detailed planning procedures.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Two levels: annual/long-term audit plan AND individual audit assignment planning
- 2Annual plan is risk-based — higher-risk entities get priority
- 3Individual planning: understand entity, define scope, set objectives, plan procedures
- 4Must specify nature, timing, extent of procedures, and timelines
- 5Detailed planning procedures are specified by the CAG centrally
- 6Financial, compliance, and performance audits can be combined in a single assignment
Practical Example
The AG (Audit), Maharashtra prepares the 2026-27 annual audit plan using risk assessment. High-risk entities like the Mumbai Metropolitan Region Development Authority get comprehensive audits. For an individual assignment — say, a performance audit of the state's solar energy programme — the team plans by studying the scheme guidelines, assessing financial materiality at Rs 5 crore, identifying key risks (subsidy leakage, target shortfall), and allocating a 4-member team for 8 weeks.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
How does risk assessment determine the annual audit plan?▼
Can audit plans change during the year?▼
Who approves the annual audit plan?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.