Regulation 65 — Audit Regulations 2020
Original Rule Text
65. Responsibilities of Statutory auditor vis-à-vis Accountant General (Audit)
The statutory auditor shall also: (1) make himself available for discussions with the office of the Comptroller and Auditor General and the Accountant General (Audit) as and when required; (2) furnish reply to the provisional comments of the Accountant General (Audit) within three days of issue and, if required, attend the meeting called by the Accountant General (Audit) with the management of the company to discuss the provisional comments; (3) attend the meetings of the audit committee, if formed, held in pursuance of the Companies Act, 2013; (4) retain the record of work done by him in the form of working papers with sufficient details so as to support his observations and conclusions for a period of five years unless required for a longer period; (5) make portions of or extracts from his working papers available to the Accountant General (Audit) in cases where it is considered necessary by Audit to verify the authenticity and correctness of the conclusions drawn in his audit report; and (6) submit to the Comptroller and Auditor General through the Accountant General (Audit), a report under the Companies Act, 2013 in compliance with the directions issued to him.
What This Means
This regulation lists six specific responsibilities of the statutory auditor towards the Accountant General (Audit). The auditor must be available for discussions, respond to provisional comments within three days, attend audit committee meetings, retain working papers for five years, share working paper extracts when needed, and submit reports as directed by CAG. These obligations ensure effective coordination between the statutory auditor and CAG's audit machinery.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Auditor must be available for discussions with AG (Audit) and CAG office whenever required
- 2Provisional comments from AG (Audit) must be replied to within 3 days
- 3Auditor must attend audit committee meetings as required under Companies Act
- 4Working papers must be retained for 5 years (longer if needed)
- 5Extracts from working papers must be shared with AG (Audit) when requested
- 6Reports must be submitted through AG (Audit) as directed by CAG
Practical Example
The AG (Audit) office issues provisional comments on the statutory audit report of Power Grid Corporation, noting that the auditor did not adequately examine capital work-in-progress of Rs 5,000 crore. The statutory auditor must reply within 3 days explaining the audit procedures followed. If the AG (Audit) calls a meeting with Power Grid management, the statutory auditor must attend. The auditor's working papers for this audit must be retained until at least 2031.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Why is there a strict 3-day deadline for replying to provisional comments?▼
Can the statutory auditor refuse to share working papers citing confidentiality?▼
What if the statutory auditor cannot attend a meeting called by AG (Audit)?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.