Articles 148, 149, 150 & 151 of The Constitution of India and the Comptroller and Auditor-General’s (Duties, Powers and Conditions of Service) Act, 1971 provide the mandate for audit of Central Public Sector Enterprises (CPSEs) & Central Autonomous Bodies (CABs) carried out in compliance with CAG’s Regulations on Audit and Accounts, 2007.

The audit of Bodies and Authorities is governed by the provisions of section 14, 15, 19(1), 19(2), 19(3) and 20 of the DPC Act, 1971. In addition, Section 143 of the Companies Act 2013 provides the authority for the audit of CPSEs and Statutory Corporations.

Financial Attestation Audit

Financial Attestation Audit is concerned with expression of audit opinion on a set of financial statements. Financial Attestation Audit is required to be carried out to reduce the possibility of the material misstatement in a financial statement and thereby, provide credibility to such a statement. The Financial Attest Audit Manual 2009 (FAAM) of Indian Audit & Accounts Department lays down the framework for the process of Financial Attest Audit within the Indian Audit and Accounts Department.

Performance Audit

Performance Audit carried out by the Department is an independent, objective and reliable examination of whether government undertakings, programs, systems, activities or organisations are performing in accordance with the principles of economy, efficiency & effectiveness and whether there is room for improvement.

Compliance Audit

Compliance Audit is an assessment as to whether the provisions of the applicable laws, rules and regulations made there under and various orders and instructions issued by the Competent Authority are being complied with. This audit by its very nature promotes accountability, good governance and transparency as it is concerned with reporting deviations, identifying system weaknesses and assessing propriety.

While conducting audit, the audit team issues preliminary Audit Note and obtain replies from the management. Based on the replies, the Inspection Report (Part II A & II B) is finalized. Potential IR Paras further developed as Factual statement, Potential Draft Para and Draft Para to be included in the Audit Report of the Union Government (Commercial) of the Comptroller & Auditor General of India. Before finalising the Draft Paras, replies of the Management/Ministry at different stages are considered and incorporated in the Audit Report. The Draft paras are further developed for system improvement through ATNs and discussed by the Committee on Public Undertakings (COPU). The Audit Report approved by the CAG of India is placed in both the Houses of the Parliament and further monitored by this office and reported to COPU through Action Taken Notes (ATNs).

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