Regulation 136 — Audit Regulations 2020
Original Rule Text
# 136. Forms of communication at the close of audit
(1) Depending on nature and type of audit, audit observations/results of audit, at the conclusion of an audit assignment, are issued in the form of, but not limited to;
(a) In case of financial audit, draft audit opinion, draft separate audit report (SAR), draft comments supplementary to the opinion of the statutory auditor or a draft audit report
(b) In case of compliance audits, inspection reports addressed to the Heads of the individual audit units or implementing units, draft paragraphs or draft audit report addressed to the Head of the Department
(c) In case of Performance Audits, draft audit report addressed to head of the Apex entity or Head of the Department or to Government
(2) The above would be issued as per the timelines prescribed in this regard; and
(3) Based on the responses received from the auditable entity and/or Department/Government and further assessment by audit, audit observations and draft audit reports are further developed into audit findings, conclusions and recommendations to be incorporated in or as Comptroller and Auditor General’s audit report.
What This Means
At the conclusion of an audit, the audit team communicates its findings in specific forms depending on the type of audit conducted. For financial audits, this means a draft audit opinion or draft Separate Audit Report. For compliance audits, it is an inspection report or draft paragraph sent to the Head of Department. For performance audits, a draft audit report goes to the head of the apex entity or government. Based on the responses received from the audited entity, these drafts are developed into final audit findings, conclusions, and recommendations for the CAG's audit report.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1The form of audit communication depends on the type of audit — financial, compliance, or performance
- 2Financial audits produce draft audit opinions or Separate Audit Reports (SARs)
- 3Compliance audits result in inspection reports or draft paragraphs to the Head of Department
- 4Performance audits produce draft reports addressed to the apex entity or government
- 5Responses from the audited entity are incorporated before finalizing the CAG's audit report
Practical Example
After completing a compliance audit of the Public Works Division in Jaipur, the AG (Audit) Rajasthan issues an Inspection Report to the Executive Engineer listing all audit observations. Separately, a significant finding about irregular expenditure of Rs 2 crore is drafted as a paragraph addressed to the Secretary, PWD. The department's response to the draft paragraph is then considered before finalizing it for inclusion in the CAG's audit report.
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 an inspection report and a draft paragraph?▼
Do all draft observations automatically become part of the CAG's audit report?▼
Are there prescribed timelines for issuing these communications?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.