Regulation 22 — Audit Regulations 2020
Original Rule Text
# 22. Authority of the Comptroller and Auditor General in regard to audit of expenditure and receipts
(1) Section 13 of the Act authorises the Comptroller and Auditor General to audit all expenditure from the Consolidated Fund of India and of each State and of each Union Territory having a legislative assembly. Section 13 read with Section 2
(e) of the Act also authorises the Comptroller and Auditor General to audit all transactions of the Union and of the States and Union Territories relating to Contingency Funds and Public Accounts.
(2) The basic principles of audit of expenditure incurred from the Consolidated Fund apply mutatis mutandis to transactions relating to the Public Account and Contingency Fund.
(3) Section 16 of the Act authorises the Comptroller and Auditor General to audit all receipts of the Government of India payable into the Consolidated Fund of India and of each State and of each Union Territory having a legislative assembly, and to satisfy himself that the rules and procedures are designed to secure an effective check on the assessment, collection and proper allocation of revenue and are being duly observed.
(4) Audit of receipts and expenditure is comprehensive and is carried out in the nature of financial audit, compliance audits, performance audits and any combinations thereof. Audit checks include whether financial statements/accounts of the Government are in compliance with the prescribed financial accounting framework, applicable laws, rules and regulations and accounting principles, policies and applicable standards including conformity with the form of accounts prescribed by the President on the advice of the Comptroller and Auditor General; Audit also checks for relevant assertions, such as completeness, occurrence, measurement, disclosure, regularity, existence, valuation and ownership.
Regulations on Audit and Accounts 2020 23
What This Means
The CAG has full authority under Sections 13 and 16 of the DPC Act to audit all expenditure from the Consolidated Fund and all government receipts (both tax and non-tax revenue) of the Union, States, and Union Territories with legislative assemblies. This also covers transactions relating to the Contingency Fund and Public Account. The audit is comprehensive, covering financial audits, compliance audits, and performance audits, checking for completeness, regularity, proper valuation, and compliance with accounting frameworks.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1CAG audits all expenditure from Consolidated Fund and all government receipts under Sections 13 and 16 of the DPC Act
- 2Coverage extends to Contingency Fund and Public Account transactions
- 3Audit is comprehensive — financial, compliance, and performance audits or combinations thereof
- 4Checks include compliance with financial accounting framework, laws, rules, and accounting standards
- 5Audit verifies assertions like completeness, occurrence, measurement, disclosure, regularity, existence, and valuation
Practical Example
The AG (Audit) office audits the expenditure of the Ministry of Health on the National Health Mission. The audit covers whether funds drawn from the Consolidated Fund were spent within the sanctioned grant (appropriation audit), whether procurement rules were followed (compliance audit), and whether the health outcomes intended by the scheme were actually achieved (performance audit) — all under the authority of Regulation 22.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Does the CAG audit only Central Government expenditure?▼
What does 'mutatis mutandis' mean in the context of Regulation 22(2)?▼
Does the CAG only check for rule violations, or also for wasteful spending?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.