Page 289 - CA Inter Audit PARAM

CA Ravi Taori
regulations as other Government departments
and agencies.

Statutory Bodies, Corporations, created by Audit of these bodies depends upon the nature and type
specific statutes mostly financed by of governing statutes.
Government in the form of loans, grants, etc.

Government Companies set up under the Audit is conducted by Statutory Auditors (Chartered
Companies Act, 2013. Accountants) appointed by the C&AG. In addition, C&AG
conduct a supplementary test audit.

QNO Power of CAG in Government Company Audit Old Course -- (P16M/M16R/N16R)
GA.35 Bhaskar CNO - GA.280
What role is played by Comptroller and Auditor General of India in the audit of a Government company?
Answer ➢ Powers Of C&AG In Case Of Government Company (Section 143)
Sub Section (5) In the case of a Government company or any other company owned or
controlled, directly or indirectly, by the Central Government, or by any State Government or
Governments, or partly by the Central Government and partly by one or more State
Governments, the Comptroller and Auditor-General of India shall appoint the auditor under
sub-section (5) or sub-section (7) of section 139 and direct such auditor the manner in which the
accounts of the company are required to be audited and thereupon the auditor so appointed
shall submit a copy of the audit report to the Comptroller and Auditor-General of India which,
among other things, include the directions, if any, issued by the Comptroller and Auditor-General
of India, the action taken thereon and its impact on the accounts and financial statement of the
company.

Sub Section (6) The Comptroller and Auditor-General of India shall within sixty days from the date
of receipt of the audit report under sub-section (5) have a right to, -

• Conduct a supplementary audit of the financial statement of the company by such person
or persons as he may authorize in this behalf; and for the purposes of such audit, require
information or additional information to be furnished to any person or persons, so
authorised, on such matters, by such person or persons, and in such form, as the Comptroller
and Auditor-General of India may direct; and

• Comment upon or supplement such audit report:
o Provided that any comments given by the Comptroller and Auditor-General of India
upon, or supplement to, the audit report shall be sent by the company to every
person entitled to copies of audited financial statements under sub-section (1) of
section 136 and also be placed before the annual general meeting of the company
at the same time and in the same manner as the audit report.

Sub Section (7) Without prejudice to the provisions of this Chapter, the Comptroller and Auditor-
General of India may, in case of any company covered under sub-section (5) or sub-section (7) of
section 139, if he considers necessary, by an order, cause test audit to be conducted of the
accounts of such company and the provisions of section 19A of the Comptroller and Auditor-
General’s (Duties, Powers and Conditions of Service) Act, 1971, shall apply to the report of such
test audit.

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