Regulation 53 — Audit Regulations 2020
Original Rule Text
53. Mandate of the Comptroller and Auditor General in regard to the audit of Government companies
As per section 19 of the Act, the duties and powers of the Comptroller and Auditor General in relation to the audit of accounts of Government companies shall be performed and exercised by him in accordance with the provisions of the Companies Act, 2013.
What This Means
The CAG's audit powers over government companies are exercised according to the Companies Act, 2013. This means the CAG follows the same legal framework that governs private company audits, but with the additional authority granted under Section 19 of the DPC Act. In practice, this ensures government companies face the same rigour of audit standards as any other company registered under Indian law.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1CAG audits government companies under Companies Act, 2013 provisions
- 2Section 19 of the DPC Act is the enabling provision for this mandate
- 3The same audit duties and powers apply as for any company audit under Companies Act
- 4Government companies cannot claim exemption from CAG audit on grounds of being corporate entities
Practical Example
When BHEL (a central government company) prepares its annual accounts, the CAG exercises audit authority under the Companies Act, 2013 — not under the general government audit provisions. The Accountant General (Audit) conducts supplementary audit of BHEL's accounts following the same framework that applies to any company where CAG has audit jurisdiction.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Does CAG audit government companies the same way it audits government departments?▼
What qualifies as a 'government company' for audit purposes?▼
Can a government company refuse CAG audit citing its corporate status?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.