Regulation 99 — Audit Regulations 2020
Original Rule Text
99. Audits other than financial audit of accounts by the Comptroller and Auditor General
(1) In addition to the financial audit of accounts of a corporation, the Comptroller and Auditor General may conduct any other type of audit including the following:
(a) test check of transactions entered into by the corporation with a view to examining their legality, competence and propriety and report on cases of infraction, waste, mismanagement, frauds and other irregularities; and
(b) performance audit with a view to ascertaining the extent to which the corporation operates economically, efficiently and effectively for the achievement of the stated objectives. (2) The scope of above audits may extend to more than one financial year. (3) The Regulations contained in Chapters 6 and 7 shall apply to the compliance and performance audits conducted under sub-Regulations (1) and (2) to the extent relevant.
What This Means
Beyond financial audit, the CAG can also conduct compliance audit and performance audit of corporations. Compliance audit checks whether transactions are legal, competent, and proper — flagging fraud, waste, or mismanagement. Performance audit evaluates whether the corporation operates with economy, efficiency, and effectiveness in achieving its stated objectives. These audits can span multiple financial years.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1CAG's audit of corporations goes beyond just financial statements
- 2Compliance audit checks legality, competence, propriety — and flags fraud, waste, mismanagement
- 3Performance audit evaluates the 3Es: economy, efficiency, and effectiveness
- 4Audit scope can extend across multiple financial years for comprehensive assessment
- 5Chapters 6 and 7 of the Regulations govern compliance and performance audit methodology
Practical Example
The CAG decides to conduct a performance audit of NTPC Limited's solar energy expansion programme spanning 2022-2025. The audit evaluates whether NTPC procured solar panels economically, executed projects efficiently within timelines and budgets, and effectively achieved its renewable energy generation targets. Separately, a compliance audit of NTPC's coal procurement reveals irregularities in tender processes that favoured certain suppliers, which the CAG reports as a case of propriety concern.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Can the CAG conduct performance audit of any corporation or only certain ones?▼
What is the difference between compliance audit and financial audit?▼
How are findings from these audits reported?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.