Regulation 71 — Audit Regulations 2020
Original Rule Text
# 71. Establishment of Audit Board for central public sector undertakings
With a view to ascertaining the extent to which an activity, programme or organisation operates economically, efficiently and effectively for the achievement of the designated objectives, the Comptroller and Auditor General has, in consultation with the Government of India, established an Audit Board for central public sector undertakings. The Audit Board is a permanent body for performance audits of the central public sector undertakings conducted at periodic intervals focusing on critical areas of their performance. The Audit Board is responsible for reviewing the performance of the central public sector undertakings on thematic issues. The issues may relate to a particular entity or cut horizontally across several entities. The scope of performance audit may extend to more than one financial year.
Regulations on Audit and Accounts 2020 46
What This Means
The CAG has established a permanent Audit Board for central public sector undertakings (CPSUs) in consultation with the Government of India. The Audit Board conducts performance audits at periodic intervals, focusing on critical areas of CPSU performance. It can examine thematic issues within a single entity or across multiple entities. Performance audits under the Audit Board may cover more than one financial year.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Audit Board is a permanent body established by CAG in consultation with Government of India
- 2Focused exclusively on performance audits of central public sector undertakings
- 3Conducts periodic reviews of critical performance areas
- 4Can examine thematic issues across multiple entities
- 5Performance audit scope may extend beyond a single financial year
Practical Example
The Audit Board decides to examine 'Procurement Practices in Central PSUs in the Energy Sector' as a thematic study. This performance audit covers NTPC, ONGC, GAIL, and BPCL across three financial years, comparing procurement efficiency, adherence to guidelines, and cost savings achieved through e-procurement. The findings are compiled into a comprehensive report highlighting best practices and systemic weaknesses.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Does the Audit Board have the power to direct PSUs?▼
Does the Audit Board cover state public sector enterprises?▼
How often does the Audit Board meet?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.