Regulation 141 — Audit Regulations 2020
Original Rule Text
141. Maintenance of record of audit observations and recommendations by audit and auditable entity and adequate oversight by the Government
Each audit office and auditable entity shall maintain proper record relating to audit observations and recommendations with a view to monitor action taken and maintain follow-up.
The Government shall also establish and implement systems and procedures that ensure adequate, constructive and timely action on audit observations and recommendations communicated by audit.
What This Means
Both the audit office and the audited entity are required to maintain proper records of all audit observations and recommendations so that follow-up action can be tracked. Additionally, the government must establish systems and procedures to ensure that adequate, constructive, and timely action is taken on audit observations and recommendations. This is not just about record-keeping — it requires active follow-up and remedial action.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Each audit office must maintain a register of audit observations and recommendations
- 2Each auditable entity must also maintain its own record of audit observations received
- 3Records must enable monitoring of action taken on each observation
- 4The government must establish systems for timely follow-up action on audit findings
- 5Both creation of records and active follow-up are mandatory, not discretionary
Practical Example
The office of the AG (Audit) Karnataka maintains a database of all inspection report paragraphs issued to the Department of Health. The department, in turn, maintains a compliance register tracking each observation — who is responsible for action, what action has been taken, and what remains pending. The Principal Secretary (Health) reviews this register quarterly to ensure that recoveries pointed out by audit are being pursued and systemic issues are being addressed.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What kind of follow-up action is expected from the government?▼
Who is responsible if audit observations remain pending for years?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.