Section 18 of The Comptroller and Auditor-General’s (Duties, Powers and Conditions of Service) Act, 1971
Powers in Connection with Audit of Accounts
Original Text
18. Powers of Comptroller and Auditor-General in connection with audit of accounts.—(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 from the basis of or are 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.
(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 from the basis of or are 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.
Visual Summary
Inspection Authority
Power to inspect any office of accounts, including treasuries.
Document Requisition
Authority to demand books and papers be sent to a specific place.
Power to Question
Right to interrogate the person in charge and seek clarifications.
Mandatory Compliance
Officials must afford all facilities and comply with requests expeditiously.
Summary
Section 18 establishes the procedural authority of the Comptroller and Auditor-General (CAG) when conducting an audit. It grants the CAG broad powers to physically inspect government offices and treasuries, demand that relevant documents be transported to a location of the CAG’s choosing, and directly question the officials in charge. Furthermore, it imposes a statutory obligation on government officials to cooperate fully, providing all necessary facilities and information without delay.
Key Takeaways
- Right to Inspect: The CAG can enter and inspect any office of accounts under the Union or State control, including treasuries.
- Venue Control: The CAG has the power to appoint the place where documents must be sent for inspection.
- Inquisitorial Power: The CAG can pose questions to the person in charge and demand specific information for report preparation.
- Duty to Assist: Sub-section (2) creates a legal obligation for department heads to provide facilities and comply with requests reasonably and quickly.
Key Analysis
- ➤ Scope of “Office of Accounts”: The section explicitly includes treasuries and offices keeping initial or subsidiary accounts. This ensures that the audit trail can be followed right to the source of the transaction, not just the final consolidated accounts.
- ➤ Logistical Authority: By allowing the CAG to determine the place of inspection, the Act prevents auditees from stalling audits by claiming files cannot be moved or by forcing auditors to work in unsuitable environments.
- ➤ Enforcement Mechanism: Sub-section (2) is crucial because it converts the moral duty of cooperation into a statutory one. Failure to provide “reasonable expedition” or “complete form” information can be viewed as a violation of the Act.
Key Ingredients
- Existence of an office of accounts (Union or State).
- Relevance of documents to the audit duties.
- Necessity of information for report preparation.
- Obligation of the “Person in Charge” to comply.
Related Provisions
Practical Illustrations
Example 1: Treasury InspectionThe CAG sends an audit team to a District Treasury office in Maharashtra. Under Section 18(1)(a), the team has the legal right to enter the premises and inspect the initial accounts maintained there. The Treasury Officer cannot deny them entry.
Example 2: Document RelocationDuring an audit of the Public Works Department (PWD), the CAG requires original contracts from 5 years ago. The PWD office is crowded and lacks space for auditors. Under Section 18(1)(b), the CAG orders the PWD to send these specific files to the Accountant General’s office for detailed scrutiny.
Example 3: Mandatory CooperationAn auditor asks a Department Head why a specific tender was rejected. The Head refuses to answer, claiming it is “internal discretion.” Under Section 18(1)(c) combined with 18(2), the Head is statutorily required to answer the question to facilitate the audit report.
Process Flowchart
Practice Questions
Q: Under Section 18(1)(b), who has the authority to appoint the place where accounts and documents must be sent for inspection?
- A. The President of India
- B. The Head of the Department being audited
- C. The Comptroller and Auditor-General
- D. The Finance Minister
View Correct Answer
Correct Answer: C. The Comptroller and Auditor-General
Reasoning: Section 18(1)(b) explicitly states that documents shall be sent to “such place as he [the CAG] may appoint for his inspection.”
Reasoning: Section 18(1)(b) explicitly states that documents shall be sent to “such place as he [the CAG] may appoint for his inspection.”
Q: Which of the following is NOT explicitly mentioned as a power of the CAG under Section 18?
- A. To inspect any office of accounts
- B. To arrest officials for non-compliance
- C. To put questions to the person in charge
- D. To call for information required for report preparation
View Correct Answer
Correct Answer: B. To arrest officials for non-compliance
Reasoning: Section 18 grants powers of inspection, requisition of documents, and questioning, but it does not grant police powers such as arrest.
Reasoning: Section 18 grants powers of inspection, requisition of documents, and questioning, but it does not grant police powers such as arrest.
Q: According to Section 18(2), what is the duty of the person in charge of an office being audited?
- A. To afford all facilities for inspection and comply with requests
- B. To audit their own accounts before the CAG arrives
- C. To negotiate the terms of the audit
- D. To request a delay in the audit process
View Correct Answer
Correct Answer: A. To afford all facilities for inspection and comply with requests
Reasoning: Section 18(2) mandates that the person in charge shall afford all facilities for inspection and comply with requests for information with reasonable expedition.
Reasoning: Section 18(2) mandates that the person in charge shall afford all facilities for inspection and comply with requests for information with reasonable expedition.
Frequently Asked Questions
Can the CAG inspect confidential documents under this section?
Yes, generally. The section empowers the CAG to require “any accounts, books, papers and other documents” relevant to the audit. Unless there is a specific statutory prohibition elsewhere, the CAG has the right to access confidential documents necessary to verify transactions.
Does Section 18 apply to private companies?
No, Section 18 specifically refers to offices of accounts under the control of the Union or a State. However, Section 19 of the same Act deals with the audit of Government companies and corporations, which incorporates provisions from the Companies Act.
What happens if an officer refuses to answer the CAG’s questions?
Refusal would be a violation of Section 18(2), which mandates compliance. Such non-compliance can be reported by the CAG in their report to the Legislature, potentially leading to administrative or disciplinary action against the official for obstructing a statutory duty.
Conclusion
Section 18 is the backbone of the CAG’s operational independence, granting the necessary physical and inquisitorial powers to conduct thorough audits. By legally compelling government officials to cooperate and provide access to all relevant records and locations, it ensures that public funds are scrutinized with transparency and accountability.