### Overview of the Comptroller and Auditor-General's (Duties, Powers and Conditions of Service) Act, 1971 (CAG
DPC Act, 1971)
The CAG DPC Act, 1971 is a key legislation that outlines the duties, powers, and conditions of service of the Comptroller
and Auditor-General of India (CAG). It elaborates on the constitutional provisions under Articles 148-151 of the Indian
Constitution. Chapter III of the Act deals with the duties and powers of the CAG, and the requested sections (13 to 21 and
24) primarily cover audit responsibilities, powers, and related provisions. Below is a detailed description of each section,
including the full verbatim provisions (where available from official sources), explanations, commentaries, and duties as
described in CAG's official resources.
#### Section 13: General Provisions Relating to Audit
**Full Provision:**
It shall be the duty of the CAG:
1. To audit all expenditure from the Consolidated Fund of India and of each State and of each Union territory having a
Legislative Assembly and to ascertain whether the moneys shown in the accounts as having been disbursed were legally
available for and applicable to the service or purpose to which they have been applied or charged and whether the
expenditure conforms to the authority which governs it;
2. To audit all transactions of the Union and of the States relating to Contingency Funds and Public Accounts;
3. To audit all trading, manufacturing, profit and loss accounts and balance-sheets and other subsidiary accounts kept in
any department of the Union or of a State; and in each case to report on the expenditure, transactions or accounts so
audited by him.
**Detailed Description:**
This section mandates the CAG to audit all expenditure from the Consolidated Fund of India, each State, and Union
Territories with Legislative Assemblies. The audit verifies if disbursed funds were legally available, appropriately applied,
and conformed to governing authorities. It is comprehensive, encompassing:
- Audit against provision of funds (checking legal availability and applicability).
- Regularity audit (ensuring compliance with rules).
- Propriety audit (evaluating wisdom, economy, and faithfulness of expenditure; commenting on waste or extravagance).
- Efficiency-cum-performance audit (appraising efficiency, progress, and achievement of objectives, including cost-
effectiveness).
- Systems audit (analyzing organizational systems, controls, and performance standards).
The audit also examines account completeness and accuracy, including vouchers. Additionally, it covers transactions
related to Contingency Funds and Public Accounts, as well as departmental trading/profit-loss accounts. The CAG must
report on all audited items. This provision ensures transparency and accountability in public financial management.
#### Section 14: Audit of Receipts and Expenditure of Bodies or Authorities Substantially Financed from Union or State
Revenues
**Full Provision:**
1. Where any body or authority is substantially financed by grants or loans from the Consolidated Fund of India or of any
State or of any Union territory having a Legislative Assembly, the Comptroller and Auditor-General shall, subject to the
provisions of any law for the time being in force applicable to the body or authority, as the case may be, audit all receipts
and expenditure of that body or authority and to report on the receipts and expenditure audited by him.
Explanation: Where the grant or loan to a body or authority from the Consolidated Fund of India or of any State or of
any Union territory having a Legislative Assembly in a financial year is not less than rupees twenty-five lakhs and the
amount of such grant or loan is not less than seventy-five percent of the total expenditure of that body or authority, such
body or authority shall be deemed, for the purposes of this sub-section, to be substantially financed by such grants or
loans as the case may be.
2. Notwithstanding anything contained in sub-section (1) the Comptroller and Auditor-General may with the previous
approval of the President or the Governor of a State or the Administrator of a Union territory having a Legislative
Assembly, as the case may be, audit all receipts and expenditure of any body or authority where the grants or loans to
such body or authority from the Consolidated Fund of India or of any State or of any Union territory having a Legislative
Assembly, as the case may be in a financial year is not less than rupees one crore.
3. Where the receipts and expenditure of any body or authority are by virtue of the fulfilment of the conditions specified
in sub-section (1) or sub-section (2) audited by the Comptroller and Auditor-General in a financial year, he shall continue
to audit the receipts and expenditure of that body or authority for a further period of two years notwithstanding that the
conditions specified in sub-section (1) or sub-section (2) are not fulfilled during any of the two subsequent years.
**Detailed Description:**
This section empowers the CAG to audit receipts and expenditure of bodies/authorities substantially financed by
grants/loans from Consolidated Funds. "Substantially financed" is defined as grants/loans ≥ ₹25 lakhs and ≥75% of total
expenditure in a year. The audit covers all receipts/expenditure (from any source) and is subject to applicable laws. With
approval, CAG can audit if grants/loans ≥ ₹1 crore. Audit continues for two more years if conditions were met previously.
Scope and periodicity are at CAG's discretion under Section 23. This applies to non-company bodies; excludes
intermediaries. The 1984 amendment raised thresholds and added continuation. It promotes accountability for public
funds usage.
#### Section 15: Functions of Comptroller and Auditor-General in the Case of Grants or Loans Given to Other
Authorities or Bodies
**Full Provision:**
1. Where any grant or loan is given for any specific purpose from the Consolidated Fund of India or of any State or of any
Union territory having a Legislative Assembly to any authority or body, not being a foreign State or international
organisation, the Comptroller and Auditor-General shall scrutinise the procedures by which the sanctioning authority
satisfies itself as to the fulfilment of the conditions subject to which such grants or loans were given and shall for this
purpose have right of access, after giving reasonable previous notice, to the books and accounts of that authority or body:
Provided that the President, the Governor of a State or the Administrator of a Union territory having a Legislative
Assembly, as the case may be, may, where he is of opinion that it is necessary so to do in the public interest, by order,
relieve the Comptroller and Auditor-General, after consultation with him, from making any such scrutiny in respect of any
body or authority receiving such grant or loan.
2. Except where he is authorised so to do by the President, the Governor of a State or the Administrator of Union territory
having a Legislative Assembly, as the case may be, the Comptroller and Auditor-General shall not have, while exercising
the powers conferred on him by sub-section (1), right of access to the books and accounts of any corporation to which any
such grant or loan as is referred to in subsection (1) is given if the law by or under which such corporation has been
established provides for the audit of the accounts of such corporation by an agency other than the Comptroller and
Auditor-General:
Provided that no such authorisation shall be made except after consultation with the Comptroller and Auditor-General
and except after giving the concerned corporation a reasonable opportunity of making representations with regard to the
proposal to give to the Comptroller and Auditor-General right of access to its books and accounts.
**Detailed Description:**
The CAG must scrutinize procedures used by sanctioning authorities to verify fulfillment of conditions for specific-
purpose grants/loans from Consolidated Funds to authorities/bodies (excluding foreign/international entities). CAG has
access rights to books/accounts after notice. The President/Governor/Administrator can relieve CAG in public interest
after consultation. Access to corporations is restricted if audited by another agency, unless authorized after consultation
and representations. This applies to specific-purpose aid (e.g., conditional grants), not general ones. Reporting is under
Section 13. It ensures proper utilization without full audit unless warranted.
#### Section 16: Audit of Receipts of Union or of States
**Full Provision:**
It shall be the duty of the Comptroller and Auditor-General to audit all receipts which are payable into the Consolidated
Fund of India and of each State and of each Union territory having a Legislative Assembly and to satisfy himself that the
rules and procedures in that behalf are designed to secure an effective check on the assessment, collection and proper
allocation of revenue and are being duly observed and to make for this purpose such examination of the accounts as he
thinks fit and report thereon.
**Detailed Description:**
The CAG audits all receipts payable into Consolidated Funds, verifying if rules/procedures ensure effective assessment,
collection, and allocation of revenue, and if they are observed. CAG conducts necessary account examinations and reports
findings. Previously consent-based, this is now statutory. It focuses on revenue efficiency and compliance, enhancing
fiscal oversight.
#### Section 17: Audit of Accounts of Stores and Stock
**Full Provision:**
The Comptroller and Auditor-General shall have authority to audit and report on the accounts of stores and stock kept in
any office or department of the Union or of a State.
**Detailed Description:**
The CAG can audit and report on stores/stock accounts in Union/State departments. This extends implicitly to Union
Territories. It ensures proper management and accountability for public assets.
#### Section 18: Powers of Comptroller and Auditor-General in Connection with Audit of Accounts
**Full Provision:**
1. The Comptroller and Auditor-General shall in connection with the performance of his duties under this Act, have
authority:
a. To inspect any office of accounts under the control of the Union or of a State, including treasuries and such offices
responsible for the keeping of initial or subsidiary accounts, as submit accounts to him;
b. To require that any accounts, books, papers and other documents which deal with or form the basis of or an otherwise
relevant to the transactions to which his duties in respect of audit extend, shall be sent to such place as he may appoint for
his inspection;
c. To put such questions or make such observations as he may consider necessary, to the person in charge of the office
and to call for such information as he may require for the preparation of any account or report which it is his duty to
prepare.
2. The person in charge of any office or department, the accounts of which have to be inspected and audited by the
Comptroller and Auditor-General, shall afford all facilities for such inspection and comply with requests for information
in as complete a form as possible and with all reasonable expedition.
**Detailed Description:**
The CAG has powers to inspect accounts offices/treasuries, require production of relevant documents, ask questions/make
observations, and demand information for reports. Audited entities must provide full facilities and expeditious
compliance. This also includes access under Sections 15, 19(3), and 20, enabling effective audit execution.
#### Section 19: Audit of Government Companies and Corporations
**Full Provision:**
1. The duties and powers of the Comptroller and Auditor-General in relation to the audit of the accounts of Government
companies shall be performed and exercised by him in accordance with the provisions of the Companies Act, 1956 (1 of
1956).
2. The duties and powers of the Comptroller and Auditor-General in relation to the audit of the accounts of corporations
(not being companies) established by or under law made by Parliament shall be performed and exercised by him in
accordance with the provisions of the respective legislations.
3. The Governor of a State or the Administrator of a Union territory having a Legislative Assembly may, where he is of
opinion that it is necessary in the public interest so to do, request the Comptroller and Auditor-General to audit the
accounts of a corporation established by law made by the Legislature of the State or of the Union territory, as the case
may be, and where such request has been made, the Comptroller and Auditor-General shall audit the accounts of such
corporation and shall have, for the purposes of such audit, right of access to the books and accounts of such corporation:
Provided that no such request shall be made except after consultation with the Comptroller and Auditor-General and
except after giving reasonable opportunity to the corporation to make representations with regard to the proposal for such
audit.
**Detailed Description:**
For Government companies (≥51% government shareholding per Companies Act, 2013), CAG's role includes appointing
auditors, directing audit manner, supplementary/test audits, and commenting on reports. For Parliamentary corporations,
audit per specific laws (including rules/regulations). For State/UT corporations, Governors/Administrators can request
audit in public interest after consultation and representations; CAG then audits with access rights. This is clarificatory;
CAG can also audit under Sections 14/15 if applicable. It ensures oversight of public sector entities.
#### Section 20: Audit of Accounts of Certain Authorities or Bodies
**Full Provision:**
(Not fully quoted in source, but described as:)
1. Save as otherwise provided in section 19, and subject to the provisions of this section, the Comptroller and Auditor-
General may, with the previous approval of the President or the Governor of a State or the Administrator of a Union
Territory having a Legislative Assembly, as the case may be, undertake the audit of all receipts and expenditure of a body
or authority on the request of the President, or the Governor or the Administrator, as the case may be, if he is of the
opinion that such audit is necessary in the public interest.
(Full description from source:)
The CAG may propose to the President/Governor/Administrator to authorize audit of bodies/authorities if substantial
government investment/advances warrant it in public interest. Entrustment under sub-section (1) requires agreement on
terms/conditions, public interest, and opportunity for representations.
**Detailed Description:**
This enabling provision allows entrustment of audit for bodies/authorities not covered by Section 19 or Parliamentary
laws. President/Governor/Administrator can entrust in public interest after representations. CAG can propose such audit if
public funds are substantially involved. Terms are agreed between CAG and government. Reports go to concerned
government for laying before legislature (per Section 19A). It fills gaps in audit coverage for public interest.
#### Section 21: Delegation of Power of Comptroller and Auditor-General
**Full Provision:**
(Not fully quoted, but described as:)
Any power exercisable by the Comptroller and Auditor-General under the provisions of this Act, or any other law may be
exercised by such officer or authority as may be authorised by him in this behalf by general or special order:
Provided that except during the absence of the Comptroller and Auditor-General on leave or otherwise, no officer shall be
authorised to submit on behalf of the Comptroller and Auditor-General any report which the Comptroller and Auditor-
General is required by the Constitution or the Government of Union Territories Act, 1963 (20 of 1963) to submit to
Parliament or the President or the Governor of a State or the Administrator of a Union Territory having a Legislative
Assembly.
**Detailed Description:**
The CAG can delegate powers under the Act to departmental officers by order. This empowers the Indian Audit and
Accounts Department. However, no delegation for submitting constitutional reports except during CAG's absence. It
facilitates efficient operations while retaining key responsibilities.
#### Section 24: Power to Dispense with Detailed Audit
**Full Provision:**
The Comptroller and Auditor-General is hereby authorised to dispense with, when circumstances so warrant, any part of
detailed audit of any accounts or class of transactions and to apply such limited check in relation to such accounts or
transactions as he may determine.
**Detailed Description:**
The CAG can waive detailed audit parts and apply limited checks if circumstances justify. This derives from secret
instructions and circulars on audit extent. It allows flexibility in resource allocation while maintaining oversight.
### 100+ Multiple-Choice Questions (MCQs) for CAG CPD-1 Exam
#### MCQs on Section 13 (11 Questions)
1. What is the primary duty of the CAG under Section 13 regarding expenditure from the Consolidated Fund?
- A) To compile accounts only
- B) To audit and ascertain legal availability and conformity to authority
- C) To approve disbursements
- D) To manage Contingency Funds
- **Correct: B**
2. Which type of audit under Section 13 examines the wisdom and economy of expenditure?
- A) Regularity audit
- B) Propriety audit
- C) Systems audit
- D) Audit against provision of funds
- **Correct: B**
3. Section 13 requires the CAG to audit transactions related to which funds?
- A) Only Consolidated Fund
- B) Contingency Funds and Public Accounts
- C) Private sector funds
- D) International loans
- **Correct: B**
4. What must the CAG report on under Section 13?
- A) Only future budgets
- B) Audited expenditure, transactions, or accounts
- C) Political decisions
- D) Employee salaries
- **Correct: B**
5. Which audit type appraises efficiency and achievement of objectives under Section 13?
- A) Propriety audit
- B) Efficiency-cum-performance audit
- C) Regularity audit
- D) Systems audit
- **Correct: B**
6. Does Section 13 cover audit of trading and profit-loss accounts in government departments?
- A) No, only private companies
- B) Yes, including balance sheets
- C) Only if requested
- D) Excludes subsidiary accounts
- **Correct: B**
7. What does regularity audit under Section 13 ensure?
- A) Economic viability
- B) Compliance with governing authority
- C) Performance metrics
- D) System improvements
- **Correct: B**
8. Systems audit under Section 13 analyzes what?
- A) Only financial records
- B) Organization, controls, and performance standards
- C) Employee performance
- D) Tax policies
- **Correct: B**
9. Is the audit under Section 13 limited to Union Territories without Legislative Assemblies?
- A) Yes
- B) No, it includes those with Assemblies
- C) Only if approved
- D) Excludes States
- **Correct: B**
10. What is verified in audit against provision of funds?
- A) Legal availability and applicability of moneys
- B) Future projections
- C) International compliance
- D) Private investments
- **Correct: A**
11. Propriety audit can comment on what?
- A) Wasteful expenditure
- B) Only legal issues
- C) Budget approvals
- D) Election funds
- **Correct: A**
#### MCQs on Section 14 (11 Questions)
12. What defines "substantially financed" under Section 14 Explanation?
- A) Grants/loans ≥ ₹25 lakhs and ≥75% of total expenditure
- B) Any grant above ₹1 crore
- C) 50% of revenue
- D) International aid only
- **Correct: A**
13. Under Section 14(2), CAG can audit if grants/loans are ≥ what amount with approval?
- A) ₹25 lakhs
- B) ₹1 crore
- C) ₹5 lakhs
- D) No threshold
- **Correct: B**
14. How long does audit continue under Section 14(3) if conditions were met previously?
- A) One year
- B) Two years
- C) Indefinitely
- D) Until revoked
- **Correct: B**
15. Does Section 14 audit cover only grants/loans or all receipts/expenditure?
- A) Only grants/loans
- B) All receipts and expenditure
- C) Only expenditure
- D) Private receipts
- **Correct: B**
16. Who approves audit under Section 14(2)?
- A) CAG alone
- B) President/Governor/Administrator
- C) Parliament
- D) Finance Ministry
- **Correct: B**
17. The 1984 amendment to Section 14 introduced what?
- A) ₹1 crore threshold and two-year continuation
- B) Exclusion of companies
- C) International bodies
- D) Reduced thresholds
- **Correct: A**
18. Section 14 applies to which entities?
- A) Foreign states
- B) Bodies/authorities substantially financed
- C) Private firms
- D) All corporations
- **Correct: B**
19. Is audit under Section 14 subject to other laws?
- A) No
- B) Yes, applicable to the body
- C) Only constitutional
- D) Excludes state laws
- **Correct: B**
20. What determines audit scope under Section 14?
- A) CAG's discretion per Section 23
- B) Government order
- C) Annual budget
- D) Public vote
- **Correct: A**
21. Does Section 14 exclude intermediaries?
- A) Yes, unless mere agencies
- B) No
- C) Only if foreign
- D) Includes all
- **Correct: A**
22. Assignments of taxes to local bodies under Section 14 are treated as?
- A) Non-auditable
- B) Grants if non-returnable for specific purposes
- C) Compensation only
- D) Private funds
- **Correct: B**
#### MCQs on Section 15 (11 Questions)
23. Section 15 applies to grants/loans for what?
- A) General purposes
- B) Specific purposes
- C) Foreign aid
- D) All loans
- **Correct: B**
24. What does CAG scrutinize under Section 15(1)?
- A) Sanctioning authority's procedures for condition fulfillment
- B) Recipient's profits
- C) International compliance
- D) Budget allocation
- **Correct: A**
25. CAG has right of access under Section 15 after?
- A) No notice
- B) Reasonable previous notice
- C) Court order
- D) Annual request
- **Correct: B**
26. Who can relieve CAG from scrutiny under Section 15 proviso?
- A) Parliament
- B) President/Governor/Administrator in public interest
- C) CAG himself
- D) Recipient body
- **Correct: B**
27. Under Section 15(2), access to corporations is restricted if?
- A) Audited by another agency per law
- B) Private
- C) Foreign
- D) Small grants
- **Correct: A**
28. Authorization under Section 15(2) requires?
- A) Consultation with CAG and representations from corporation
- B) No consultation
- C) Only government approval
- D) Public hearing
- **Correct: A**
29. Section 15 excludes which entities?
- A) Foreign states or international organizations
- B) States
- C) Union Territories
- D) Companies
- **Correct: A**
30. Reporting under Section 15 is done via?
- A) Section 13 as Consolidated Fund expenditure
- B) Separate report
- C) Annual budget
- D) No reporting
- **Correct: A**
31. Section 15 scrutiny relates to?
- A) Full audit
- B) Sanctioning procedures only
- C) Recipient performance
- D) Tax collection
- **Correct: B**
32. Examples of specific-purpose grants under Section 15 include?
- A) Deficit covering
- B) Conditional grants for land/equipment
- C) General aid
- D) Compensation
- **Correct: B**
33. Is access under Section 15 obligatory for all books?
- A) Yes
- B) Only as needed for scrutiny, subject to law
- C) No access
- D) Unlimited
- **Correct: B**
#### MCQs on Section 16 (11 Questions)
34. Section 16 mandates CAG to audit what?
- A) Only expenditure
- B) All receipts payable into Consolidated Fund
- C) Private receipts
- D) International revenues
- **Correct: B**
35. What must CAG satisfy under Section 16?
- A) Rules/procedures secure effective check on revenue assessment/collection/allocation
- B) Expenditure limits
- C) Budget approvals
- D) Employee salaries
- **Correct: A**
36. CAG can examine accounts under Section 16 as?
- A) He thinks fit
- B) Government directs
- C) Annually only
- D) No examination
- **Correct: A**
37. What is the outcome of Section 16 audit?
- A) Report thereon
- B) No report
- C) Budget revision
- D) Tax changes
- **Correct: A**
38. Prior to the Act, Section 16 audit was?
- A) Statutory
- B) Consent-based
- C) Prohibited
- D) International
- **Correct: B**
39. Section 16 covers receipts of?
- A) Union, States, UTs with Assemblies
- B) Private sector
- C) Foreign aid
- D) All UTs
- **Correct: A**
40. Focus of Section 16 is on?
- A) Revenue efficiency and compliance
- B) Expenditure only
- C) Stores
- D) Companies
- **Correct: A**
41. Does Section 16 require observation of rules?
- A) Yes, and if they are duly observed
- B) No
- C) Only assessment
- D) Only collection
- **Correct: A**
42. Section 16 was under which prior order?
- A) Government of India (Audit and Accounts) Order, 1936
- B) Constitution
- C) Companies Act
- D) No prior
- **Correct: A**
43. CAG reports on what under Section 16?
- A) Findings from examination
- B) Future revenues
- C) Political issues
- D) No reports
- **Correct: A**
44. Section 16 ensures effective check on?
- A) Assessment, collection, allocation
- B) Expenditure only
- C) Loans
- D) Grants
- **Correct: A**
#### MCQs on Section 17 (11 Questions)
45. Section 17 gives CAG authority to audit what?
- A) Receipts
- B) Stores and stock accounts
- C) Budgets
- D) Salaries
- **Correct: B**
46. In which entities does Section 17 apply?
- A) Union or State offices/departments
- B) Private firms
- C) Foreign bodies
- D) All corporations
- **Correct: A**
47. CAG must do what under Section 17?
- A) Audit and report
- B) Manage stores
- C) Approve purchases
- D) No report
- **Correct: A**
48. Does Section 17 extend to Union Territories?
- A) Implicitly yes
- B) No
- C) Only with Assemblies
- D) Excludes States
- **Correct: A**
49. Purpose of Section 17 is?
- A) Accountability for public assets
- B) Revenue collection
- C) Grant scrutiny
- D) Company audit
- **Correct: A**
50. Is audit under Section 17 mandatory?
- A) No, authority to audit
- B) Yes, always
- C) Only on request
- D) Prohibited
- **Correct: A**
51. Section 17 covers accounts of?
- A) Stores and stock kept in offices
- B) Financial statements only
- C) Receipts
- D) Loans
- **Correct: A**
52. Reporting under Section 17 is?
- A) On audited accounts
- B) Optional
- C) To Parliament only
- D) No reporting
- **Correct: A**
53. Section 17 applies to?
- A) Any office or department
- B) Treasuries only
- C) Companies
- D) Foreign stores
- **Correct: A**
54. What is audited under Section 17?
- A) Accounts of stores and stock
- B) Performance
- C) Budget
- D) Taxes
- **Correct: A**
55. Implicit extension of Section 17?
- A) To Union Territories in context
- B) To private sector
- C) No extension
- D) International
- **Correct: A**
#### MCQs on Section 18 (11 Questions)
56. Under Section 18(1)(a), CAG can inspect?
- A) Any office of accounts, treasuries
- B) Private homes
- C) Foreign embassies
- D) No inspection
- **Correct: A**
57. Section 18 allows CAG to require?
- A) Production of relevant documents
- B) Budget changes
- C) Employee transfers
- D) Tax refunds
- **Correct: A**
58. CAG can put what under Section 18?
- A) Questions and observations
- B) Arrests
- C) Fines
- D) Promotions
- **Correct: A**
59. Under Section 18(2), audited entities must?
- A) Provide facilities and comply expeditiously
- B) Refuse access
- C) Delay information
- D) Partial compliance
- **Correct: A**
60. Section 18 powers are for?
- A) Performance of duties under the Act
- B) Personal use
- C) Political audits
- D) No powers
- **Correct: A**
61. Access under Section 18 includes?
- A) Initial/subsidiary accounts offices
- B) Only head offices
- C) Excludes treasuries
- D) Private accounts
- **Correct: A**
62. Information requests under Section 18 must be?
- A) In complete form with expedition
- B) Optional
- C) Delayed
- D) Partial
- **Correct: A**
63. Section 18 also references access under which sections?
- A) 15, 19(3), 20
- B) 13 only
- C) 24
- D) None
- **Correct: A**
64. Purpose of questions/observations under Section 18?
- A) For account/report preparation
- B) Entertainment
- C) Criticism
- D) No purpose
- **Correct: A**
65. Who must comply with Section 18(2)?
- A) Person in charge of office/department
- B) CAG only
- C) President
- D) No one
- **Correct: A**
66. Documents under Section 18 are those?
- A) Relevant to transactions
- B) Irrelevant
- C) Personal
- D) Destroyed
- **Correct: A**
#### MCQs on Section 19 (11 Questions)
67. For Government companies, CAG's duties are per?
- A) Companies Act, 2013 (replacing 1956)
- B) DPC Act only
- C) Constitution
- D) No duties
- **Correct: A**
68. What is a Government company under Section 19?
- A) ≥51% government shareholding
- B) Private
- C) Foreign
- D) <50%
- **Correct: A**
69. For Parliamentary corporations, audit is per?
- A) Respective legislations
- B) DPC Act
- C) Request only
- D) No audit
- **Correct: A**
70. Under Section 19(3), who requests audit of State corporations?
- A) Governor/Administrator in public interest
- B) CAG
- C) Parliament
- D) Corporation
- **Correct: A**
71. Request under Section 19(3) requires?
- A) Consultation with CAG and representations
- B) No consultation
- C) Immediate audit
- D) Fee payment
- **Correct: A**
72. CAG's role in Government companies includes?
- A) Appointing auditors, supplementary audit
- B) Managing company
- C) Shareholding
- D) No role
- **Correct: A**
73. Section 19(2) is?
- A) Clarificatory for Parliamentary corporations
- B) Mandatory
- C) Optional
- D) Excludes rules
- **Correct: A**
74. Can CAG audit under Section 19 if not per legislation?
- A) Yes, via Sections 14/15
- B) No
- C) Only companies
- D) Foreign only
- **Correct: A**
75. "Legislations" in Section 19(2) include?
- A) Parent Acts, rules, regulations
- B) Only Acts
- C) Constitution
- D) No rules
- **Correct: A**
76. For State corporations, audit entrustment is?
- A) Enabling via request
- B) Automatic
- C) Prohibited
- D) Parliamentary
- **Correct: A**
77. After request under 19(3), CAG has?
- A) Access to books/accounts
- B) No access
- C) Partial
- D) Only reports
- **Correct: A**
#### MCQs on Section 20 (11 Questions)
78. Section 20 is an enabling provision for?
- A) Audit of bodies not under Section 19
- B) Companies only
- C) Foreign bodies
- D) No audit
- **Correct: A**
79. Who entrusts audit under Section 20(1)?
- A) President/Governor/Administrator
- B) CAG alone
- C) Parliament
- D) Body itself
- **Correct: A**
80. CAG can propose audit under Section 20(2) if?
- A) Substantial government investment/advances
- B) No investment
- C) Private funds
- D) Small amounts
- **Correct: A**
81. Entrustment under Section 20 requires?
- A) Public interest, representations, agreed terms
- B) No terms
- C) Fee
- D) Immediate
- **Correct: A**
82. Reports under Section 20 go to?
- A) Government for legislature (per 19A)
- B) Public
- C) No reports
- D) CAG only
- **Correct: A**
83. Section 20 fills gaps in?
- A) Audit coverage for public interest
- B) Budgeting
- C) Taxation
- D) Loans
- **Correct: A**
84. Is approval required under Section 20?
- A) Yes, previous approval
- B) No
- C) Post-audit
- D) Optional
- **Correct: A**
85. Section 20 audit covers?
- A) Receipts and expenditure
- B) Only receipts
- C) No expenditure
- D) Private
- **Correct: A**
86. Opinion for audit under Section 20 is based on?
- A) Public interest
- B) Private gain
- C) No opinion
- D) Political
- **Correct: A**
87. Terms under Section 20(1) are?
- A) Agreed between CAG and government
- B) Fixed by law
- C) No terms
- D) Corporation decides
- **Correct: A**
88. Section 20 excludes entities under?
- A) Section 19 or Parliamentary laws
- B) All
- C) States
- D) No exclusion
- **Correct: A**
#### MCQs on Section 21 (11 Questions)
89. Section 21 allows CAG to?
- A) Delegate powers to officers
- B) No delegation
- C) Delegate to private
- D) Only reports
- **Correct: A**
90. Delegation under Section 21 is by?
- A) General or special order
- B) Verbal
- C) No order
- D) Parliament
- **Correct: A**
91. Restriction on delegation in Section 21?
- A) No officer can submit constitutional reports except during CAG absence
- B) Full delegation
- C) No restriction
- D) Only leave
- **Correct: A**
92. Section 21 empowers which department?
- A) Indian Audit and Accounts Department
- B) Finance
- C) No department
- D) Private
- **Correct: A**
93. Delegation applies to powers under?
- A) The Act
- B) Only Constitution
- C) No powers
- D) Foreign laws
- **Correct: A**
94. During CAG's absence, delegation allows?
- A) Submitting reports
- B) No
- C) Partial
- D) Prohibited
- **Correct: A**
95. Purpose of Section 21?
- A) Efficient operations
- B) Centralize power
- C) Reduce audits
- D) No purpose
- **Correct: A**
96. Who can be authorized under Section 21?
- A) Any officer of department
- B) Outsiders
- C) No one
- D) Only seniors
- **Correct: A**
97. Section 21 references which Act for reports?
- A) Government of Union Territories Act, 1963
- B) Companies
- C) No reference
- D) Constitution only
- **Correct: A**
98. Is delegation subject to conditions?
- A) Yes, on reports
- B) No
- C) Optional
- D) Full
- **Correct: A**
99. Section 21 facilitates?
- A) Departmental functioning on CAG's behalf
- B) Independence loss
- C) No facilitation
- D) Delays
- **Correct: A**
#### MCQs on Section 24 (11 Questions)
100. Section 24 authorizes CAG to?
- A) Dispense with detailed audit parts
- B) Mandate full audit always
- C) No dispensation
- D) Private audits
- **Correct: A**
101. When can CAG dispense under Section 24?
- A) When circumstances warrant
- B) Always
- C) Never
- D) On request
- **Correct: A**
102. What can CAG apply instead under Section 24?
- A) Limited checks
- B) No checks
- C) Full detailed
- D) External
- **Correct: A**
103. Section 24 derives authority for?
- A) Quantum/extent instructions and circulars
- B) Budgets
- C) Taxes
- D) No authority
- **Correct: A**
104. Purpose of Section 24?
- A) Flexibility in resource allocation
- B) Increase details
- C) Prohibit audits
- D) No purpose
- **Correct: A**
105. Applies to what under Section 24?
- A) Any accounts or class of transactions
- B) Only receipts
- C) Expenditure only
- D) Private
- **Correct: A**
106. Is dispensation mandatory?
- A) No, when warranted
- B) Yes
- C) Optional always
- D) Prohibited
- **Correct: A**
107. Limited checks under Section 24 are determined by?
- A) CAG
- B) Government
- C) Parliament
- D) No one
- **Correct: A**
108. Section 24 allows?
- A) Waiver of detailed audit
- B) Mandatory details
- C) No waiver
- D) Full only
- **Correct: A**
109. Based on what?
- A) Circumstances
- B) Fixed rules
- C) No basis
- D) Requests
- **Correct: A**
110. Section 24 maintains?
- A) Oversight with flexibility
- B) No oversight
- C) Rigidity
- D) Delays
- **Correct: A**
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