Section 23 of CAG Act : Section 23: Power To Make Regulations

Explanation using Example

Imagine a situation where the Comptroller and Auditor-General (CAG) of India discovers that there is ambiguity in how different government departments are maintaining their accounts and the extent to which their financial activities are being audited. To address this, the CAG decides to use the authority granted under Section 23 of The Comptroller Auditor-General's (Duties, Powers and Conditions of Service) Act, 1971. The CAG formulates a set of regulations that clearly define the accounting principles to be followed by all departments. These regulations also outline the depth and breadth of the audit process for both revenue and expenditure, ensuring consistency and transparency across all government financial operations. As a result, the departments align their accounting practices with these regulations, leading to more efficient audits and better financial governance.