Q 1 What are the functions of Commercial Audit Wing?
Answer Commercial Audit Wing is responsible for auditing the accounts of Central and State Government companies and Corporations which function on commercial lines.
Q. 2 What is the mandate of Commercial Audit of Companies/Corporations?
Answer Section 619 of the Companies Act, 1956 read with Section 19 of the CAG’s (Duties, Powers and Conditions of Service) Act 1971 empowers CAG to audit the accounts of Government Companies. The Corporations and Authorities formed under specific statutes are audited by the CAG as per the provisions contained in their respective Act.
Q. 3 What are the audits conducted by Commercial Audit?
Answer The audits conducted by Commercial Audit Wing include financial audit, transaction audit and performance audit. Based on these audits, Audit Reports on Regularity and performance audit are issued by the CAG to the Government.
Q. 4 Whether the comments of CAG under section 619((4) of the Companies Act, 1956 on the accounts of Government companies are required to be placed before the AGM?
Answer Yes, companies are required to place the comments of CAG before the AGM at the same time and in the same manner as the Audit Report of statutory auditors appointed by him.
Q.5 What is the role of ‘Audit Board for Central PSUs’?
Answer ‘Audit Board for Central PSUs’, which is permanent in nature, is under the supervision and control of CAG. The Board examines the selection of topics based on strategic audit plan of the department and recommends the topics for performance audit. It also approves the guidelines, audit objectives, criteria and methodology for conducting performance audits.
Q 6 Who are eligible for empanelment for audit of Government companies?
Answer A Chartered Accountant firm registered with the Institute of Chartered Accountants of India having at least one full time FCA partner is eligible for empanelment with this office for audit of Public Sector Undertakings.
Q 7 When can I apply for empanelment with CAG office?
Answer The empanelment of Chartered Accountant firms takes place once in two years during the month of January to March each year. A notice of the same is generally published in the leading newspapers and the Journal of the Institute of Chartered Accountants of India.
Q 8 What am I supposed to do when the empanelment is on?
Answer While the empanelment is on, the firm is required to enter/update its data on the website specified in the notice as mentioned above. The firm has to send the copies of the documents asked for vide the notice and as mentioned on the website before the due date.
Q 9 How can I know that I have been empanelled with CAG office?
Answer A list of empanelled firms is put on the website and individual letters in this regard are also sent to the firms after verification of the data furnished by each firm with the supporting documents submitted by it and the data received from the Institute of Chartered Accountants of India.
Q 10 Does empanelment mean that I will necessarily get audit of Government companies?
Answer No, empanelment doesn’t guarantee that the firm would be allotted an audit also. The empanelled firms are ranked on the basis of their seniority, number of partners, number of employees, qualifications of its partners in the field of Information System Audits, sectoral experience, quality of professional work and audits are allotted on the basis of the points scored by each firm.