Regulation 43 — Audit Regulations 2020
Original Rule Text
# 43. Broad framework of financial audit of Government
(1) The Comptroller and Auditor General examines and certifies the Finance Accounts and the Appropriation Accounts of the Union and of each State and the Union Territory having a legislative assembly, irrespective of the agency that is responsible for their compilation.
(2) The Finance Accounts of the Government show the receipts and disbursements of the Government for the financial year, together with the financial results disclosed by the revenue and capital accounts, the accounts relating to public debt and assets and other liabilities as prescribed.
(3) The Appropriation Accounts of the Government show the expenditure of the Government compared with the amounts authorised by the legislature with explanations for significant variations between the two by way of saving or excess beyond the prescribed limits of such variations.
(4) Financial audit is carried out as per Auditing Standards, manuals, guidelines and other relevant orders issued by the Comptroller and Auditor General.
(also refer Chapter 5 of these Regulations which covers some checks performed as part of financial audit of Government)
What This Means
Financial audit of the government involves the CAG examining and certifying two key sets of accounts: the Finance Accounts (showing receipts, disbursements, and the overall financial position including public debt and assets/liabilities) and the Appropriation Accounts (comparing actual expenditure against amounts authorized by the legislature, with explanations for significant variations). This audit applies to the Union, each State, and each UT with a legislative assembly, and is conducted per CAG's Auditing Standards and guidelines.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1CAG certifies two key government accounts: Finance Accounts and Appropriation Accounts
- 2Finance Accounts show receipts, disbursements, public debt, assets, and liabilities
- 3Appropriation Accounts compare actual expenditure against legislative authorization
- 4Significant variations (excess or savings) must be explained
- 5Audit is conducted per CAG's Auditing Standards, manuals, and guidelines
- 6Applies regardless of which agency compiled the accounts
Practical Example
The AG (A&E) compiles the Finance Accounts and Appropriation Accounts for a State government. The AG (Audit) then examines and certifies these. In the Appropriation Accounts, the AG (Audit) finds that the Education Department exceeded its grant by Rs 150 crore (a saving of only Rs 10 crore was expected). The department must explain this excess, and the AG certifies the accounts with appropriate remarks for the State Legislature.
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 Finance Accounts and Appropriation Accounts?▼
Does the CAG certify accounts even if another agency compiles them?▼
What happens if the Appropriation Accounts show excess expenditure?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.