Regulation 38 — Audit Regulations 2020
Original Rule Text
38. Authority of the Comptroller and Auditor General in regard to audit of other assets and liabilities
(1) Section 13 read with Section 2
(e) of the Act authorises the Comptroller and Auditor General to audit trading, manufacturing and profit and loss accounts and balance sheets and other subsidiary accounts kept in any department of the Union or of a State or of a Union Territory having a legislative assembly and to report on accounts so audited by him.
(2) Accordingly, besides store and stock, audit by the Comptroller and Auditor General shall extend to all other assets and liabilities of the Union and of States and of Union Territories having a legislative assembly including ongoing and completed works, investments, loans and advances, deposits, cash balances, internal and external borrowings, guarantees given by the Governments, reserves and sinking funds.
What This Means
Beyond stores and stock, the CAG's audit authority extends to all other assets and liabilities of the Union, States, and Union Territories. Under Section 13 of the DPC Act, the CAG can audit trading, manufacturing, profit and loss accounts, balance sheets, and subsidiary accounts kept in any government department. This comprehensive mandate covers ongoing and completed works, investments, loans and advances, deposits, cash balances, borrowings (internal and external), guarantees, reserves, and sinking funds.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1CAG's audit extends to ALL government assets and liabilities — not just stores
- 2Authority under Section 13 read with Section 2(e) of the DPC Act
- 3Covers trading, manufacturing, P&L accounts, and balance sheets of government departments
- 4Includes works (ongoing + completed), investments, loans, deposits, cash balances
- 5Covers internal and external borrowings, government guarantees, reserves, and sinking funds
Practical Example
The CAG audits the Railways' balance sheet, which includes assets like rolling stock worth thousands of crores and liabilities including market borrowings through IRFC. Under Regulation 38, the audit covers: (i) valuation of ongoing projects like the Bullet Train, (ii) outstanding loans and advances to railway employees, (iii) deposit balances in various funds, and (iv) guarantees issued for IRFC borrowings.
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 government investments in the stock market or bonds?▼
Are government guarantees considered liabilities for audit purposes?▼
Does this cover state-level assets and liabilities too?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.