Regulation 7 — Audit Regulations 2020
Original Rule Text
7. Scope and Extent of audit
(1) Section 23 of the Act provides that the scope and extent of audit shall be determined by the Comptroller and Auditor General. Such authority is not limited by any considerations other than ensuring that the objectives of audit are achieved. (2) The scope of audit will be defined, consistent with the type of audit and the audit objectives, and may include the assessment of internal controls in the auditable entities. Such an assessment may be undertaken either as an integral component of an audit or as a distinct audit assignment. (3) The Comptroller and Auditor General may, in addition, decide to undertake any other audit of transactions, activity, programme, scheme, organization or entity, both integral and incidental to fulfillment of audit mandate, and to the achievement of the objectives of audit. (4) The Comptroller and Auditor General may prescribe the extent of audit, which comprises the quantum of audit including the period of coverage, the units of the auditable entity, the extent of sampling, if sampling is resorted to, and the boundaries of audit enquiry. (5) Under Section 24 of the Act, the Comptroller and Auditor General may, when circumstances so warrant, dispense with any part of detailed audit of any accounts or class of transactions and apply such limited checks in relation to such accounts or transactions as he may determine.
What This Means
The CAG has complete authority to determine the scope and extent of any audit. This includes deciding what to audit, how deeply to audit, which units to cover, what sampling methods to use, and how far the audit enquiry should go. The CAG can also undertake any additional audit of transactions, programmes, or organizations needed to fulfill the audit mandate. Under Section 24 of the DPC Act, the CAG can even dispense with detailed audit and apply limited checks when circumstances warrant.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1CAG has unfettered authority to determine audit scope under Section 23 of the DPC Act
- 2Scope includes assessment of internal controls, either within an audit or as a separate assignment
- 3CAG can undertake additional audits beyond routine — including performance and thematic audits
- 4Extent covers quantum, period, units, sampling, and boundaries of enquiry
- 5CAG can apply limited checks instead of detailed audit under Section 24 when warranted
Practical Example
The CAG decides that all district-level MGNREGA offices across five states will be audited for FY 2024-25 with a focus on delayed wage payments. The scope includes compliance with scheme guidelines, internal controls over beneficiary selection, and a 20% sample of payment transactions. For smaller districts with clean track records, limited checks are applied instead of detailed audit, freeing resources for high-risk districts.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Can any external authority limit the CAG's audit scope?▼
What does 'dispense with detailed audit' mean under Section 24?▼
Can CAG audit a programme that spans multiple ministries?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.