Regulation 79 — Audit Regulations 2020
Original Rule Text
79. Inclusion of results of audit in the Audit Report
The results of audit of Government companies or any other Company may also be included in the audit report of the Comptroller and Auditor General. No comments shall, however, be included in the audit report except after giving due opportunity to the Government company or any other Company and the Government to offer their explanation on the matters proposed to be included in the audit report.
What This Means
The results of CAG's audit of government companies can be included in the CAG's audit report that is laid before Parliament or the state legislature. However, before any observation is included, the company and the government must be given a fair opportunity to explain their position on the matters proposed for inclusion. This ensures the principle of natural justice is followed in audit reporting.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Audit findings on government companies can be included in CAG's audit report to Parliament/legislature
- 2Company must be given opportunity to explain before observations are included
- 3Government must also be given opportunity to respond
- 4No observation can be included without giving this due opportunity
- 5This upholds principles of natural justice and fairness in audit reporting
Practical Example
The CAG proposes to include observations about cost overruns in a highway project by NHAI in the Union Audit Report. Before inclusion, NHAI and the Ministry of Road Transport receive draft paragraphs with a deadline to submit their explanations. NHAI explains that cost increases were due to land acquisition delays and revised safety standards. The CAG considers these explanations and includes the observation along with the company's response in the final report laid before Parliament.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is the CAG's audit report mentioned here?▼
Can a company prevent its audit observations from being included in the CAG report?▼
What happens after the report is laid before Parliament?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.