Regulation 78 — Audit Regulations 2020

Audit Regulations 2020regulations-audit

78. Application of Regulations for Performance Audit of State Public Sector Undertakings/Enterprises
The Regulations prescribed for Performance Audit shall apply mutatis mutandis to audit of State Public Sector Undertakings/ Enterprises.

What This Means

The performance audit regulations that apply to central PSUs (through the Audit Board framework) also apply to state public sector undertakings and enterprises, with necessary adaptations. The phrase 'mutatis mutandis' means the same regulations apply with appropriate modifications to fit the state context.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Key Points

1Performance audit regulations apply equally to state public sector enterprises
2Application is 'mutatis mutandis' — with necessary modifications for the state context
3State PSUs do not have a formal Audit Board, but the audit methodology is the same
4This ensures uniformity in performance audit standards across central and state levels

Practical Example

The AG (Audit), Maharashtra decides to conduct a performance audit of the Maharashtra State Road Transport Corporation (MSRTC). Although there is no formal Audit Board for state PSUs, the AG applies the same performance audit framework — defining objectives, criteria, and methodology (as in Regulation 76), conducting field audit, and holding an exit conference with MSRTC management and the state Transport Secretary.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Frequently Asked Questions

Do state PSUs have an Audit Board similar to central PSUs?▼

No. The Audit Board (Regulations 71-77) is specifically for central public sector undertakings. For state PSUs, the performance audit methodology applies but without the formal Board structure. The AG (Audit) of the state manages the process.

What does 'mutatis mutandis' mean in practice?▼

It means 'with the necessary changes.' For example, references to the Government of India become references to the state government, the Deputy CAG (Commercial) role is adapted to the AG (Audit) level, and administrative ministry references become state department references.

Are state PSU performance audit reports also laid before the legislature?▼

Yes. Under Section 19A of the DPC Act, CAG's reports on state PSUs are submitted to the Governor and laid before the state legislature, following the same reporting framework as central PSU audit reports laid before Parliament.

This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.

Regulation 78 — Audit Regulations 2020

Original Rule Text

What This Means

Key Points

Practical Example

Frequently Asked Questions

Related Rules