Page 317 - CA Final PARAM Digital Book.

Companies, Deemed Government Companies and Corporations
• Result of comprehensive appraisals of selected undertakings conducted by the Audit
Board.
• Resume of the company auditor’s reports submitted by them under the directions
issued by the CAG and that of comments on the accounts of the Government
Companies.
• Significant results of audit of the undertakings not taken up for appraisal by the
Audit Board.
For certain specified states, the Comptroller and Auditor General submit a separate audit
report (commercial) to the legislature, while for other States/Union Territories with
legislature, there is a commercial chapter in the main audit report. The State audit
reports, contains both the results of audit appraisal of performance of selected
companies/corporations as well as important individual instances of financial
irregularities, wasteful expenditure, system deficiencies noticed by the statutory auditors,
comments noticed in Government audit in the audit functions of certification of accounts
and a general review of the working results of Government companies and corporations.
Author’s Note
Above answer has been explained and summarized below to make it answer easy to understand.

• Out of Audit Reports by CAs and Audit Reports by CAG Teams submitted to CAG Departments some
are taken for appraisal by Audit Boards. So some audit reports are analyzed by audit reports and
some are left out.

• First Section of Answer is Parts of Audit Report on Government Undertaking
1st Part — Introduction of Government Entity
2nd Part — Result of Comprehensive Appraisal of Audit Board (If Selected by audit board)
3rd Part — Summary of Company Auditor’s Report on Government Entity
4th Part — Significant Results of Audit Report by CAG Team on Government Entity (If not selected
by audit board)
So Either 2nd Part will Come or 4th Part will come

• Second section says that in big industrial states like Maharashtra there can be separate report on
commercial activities by government or it can be included in main report as separate chapter. State
wise reports will also explain instances of irregularities and wastage.

Functioning of Finance Committee & Role of Old Course-- (N18M)
QNO C&AG –
604.010
TITANIUM CNO – PSU.260
The Comptroller &Auditor General of India plays a key role in the functioning of the financial
committees of Parliament and the State Legislatures. He has come to be recognized as a 'friend,

philosopher and guide' of the Committees. In view of above, you are required to list down any four
roles.

Answer ➢ The Comptroller & Auditor General of India plays a key role in the functioning of the financial
committees of Parliament and the State Legislatures. He has come to be recognized as a 'friend,

philosopher and guide' of the Committees.
His Reports generally form the basis of the Committees' working, although they are not
precluded from examining issues not brought out in his Reports;
He scrutinizes the notes which the Ministries submit to the Committees and helps the
Committees to check the correctness of submissions to the Committees and facts and
figures in their draft reports;
The Financial Committees present their Report to the Parliament/ State Legislature with
their observations and recommendations.
The various Ministries / Department of the Government are required to inform the
Committees of the action taken by them on the recommendations of the Committees
(which are generally accepted) and the Committees present Action Taken Reports to
Parliament / Legislature;
In respect of those Audit Reports, which could not be discussed in detail by the
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