Regulation 61 — Audit Regulations 2020
Original Rule Text
# 61. Role of the Comptroller and Auditor General with regard to audit by statutory auditor
The Comptroller and Auditor General is authorised to direct the manner in which the statutory auditor shall audit the accounts of Government company or any other company and to give to such auditor directions. The statutory
Regulations on Audit and Accounts 2020 42
auditor shall submit a copy of his report to the Comptroller and Auditor General and which shall, among other things, include the directions, if any, issued by the Comptroller and Auditor General, the action taken thereon and its impact on the accounts and financial statements of the company. The Comptroller and Auditor General shall within sixty days from the date of receipt of the above audit report have a right to:
(1) conduct a supplementary audit of the financial statement of the company; and (2) comment upon or supplement such audit report.
What This Means
The CAG has authority to direct how the statutory auditor should audit a government company's accounts. The statutory auditor must submit a copy of their audit report to the CAG, including details of any CAG directions, actions taken, and their impact on the accounts. Within 60 days of receiving this report, the CAG has the right to conduct a supplementary audit of the company's financial statements and to comment upon or supplement the statutory auditor's report.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1CAG can direct the manner and method of statutory audit
- 2Statutory auditor must submit a copy of the audit report to CAG
- 3Report must include CAG directions received, actions taken, and impact on accounts
- 4CAG has 60 days from receipt of audit report to conduct supplementary audit
- 5CAG can comment upon or supplement the statutory auditor's report
Practical Example
The CAG issues a direction to the statutory auditor of Coal India Ltd to specifically examine related-party transactions exceeding Rs 50 crore. The statutory auditor completes the audit, includes a section on the direction and findings in the report, and submits a copy to the Accountant General (Audit). Within 60 days, the AG (Audit) team conducts a supplementary audit, finds that certain transactions were not adequately disclosed, and issues CAG comments to be placed alongside the statutory auditor's report at Coal India's AGM.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What happens if the statutory auditor does not follow CAG directions?▼
What is the significance of the 60-day window?▼
Can the CAG reject the statutory auditor's report entirely?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.