Regulation 39 — Audit Regulations 2020
Original Rule Text
39. Broad principles of audit to apply
Broad principles of audit shall apply to audit of assets and liabilities.
What This Means
The same broad principles that govern other types of government audit also apply to the audit of assets and liabilities. This means the standards of regularity, propriety, economy, efficiency, and effectiveness apply equally when auditing government assets (like buildings, investments, and loans) and liabilities (like borrowings and guarantees).
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Broad audit principles apply uniformly to audit of assets and liabilities
- 2No separate or reduced standard of scrutiny for asset/liability audit
- 3Includes principles of regularity, propriety, economy, efficiency, and effectiveness
- 4Ensures consistency of audit approach across all types of government operations
Practical Example
When the CAG audits a State government's borrowing program, the same principles of propriety and economy apply as for expenditure audit. If the State borrowed at higher interest rates than available in the market without justification, the audit can flag this as a propriety issue, just as it would flag wasteful expenditure — because broad audit principles apply equally to liabilities under Regulation 39.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What are the 'broad principles of audit' referred to here?▼
Does this mean asset audit follows the same procedures as expenditure audit?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.