The statutory auditor of a Government Company submits his report to_
|a) the BODs of the company|
b) the C & AG
c) the Legislature
d) the company secretary
The Correct Answer Is:
- b) the C & AG
The correct answer is “b) the C & AG,” which stands for the Comptroller and Auditor General. This answer is correct because, in the case of a Government Company, the statutory auditor submits the audit report to the Comptroller and Auditor General, who is responsible for auditing and overseeing the financial affairs of government entities.
Let’s delve into the details of why this answer is correct and why the other options are not:
b) The C & AG:
In the context of a Government Company, the statutory auditor is required to submit the audit report to the Comptroller and Auditor General (C & AG). The C & AG is a constitutional authority and a senior government official responsible for auditing and overseeing the financial operations of government entities, including Government Companies.
The C & AG’s role is to ensure transparency, accountability, and the proper use of public funds. By submitting the audit report to the C & AG, the statutory auditor enables an independent and thorough examination of the company’s financial statements, compliance with laws and regulations, and the efficient use of government resources.
The C & AG’s audit report is then presented to the Parliament or Legislature for further scrutiny and action as necessary.
Now, let’s explore why the other options are not correct:
a) The BODs of the company:
Submitting the audit report directly to the Board of Directors (BODs) of the company is not the correct option for a Government Company. While the BODs typically receive and review the audit report, Government Companies are subject to additional oversight and scrutiny due to their public nature and the use of public funds.
Therefore, the audit report is primarily submitted to the C & AG, who acts as an independent authority to ensure transparency and accountability.
c) The Legislature:
While the audit report ultimately reaches the Legislature, it does not go directly from the statutory auditor. Instead, it is submitted to the C & AG, who is responsible for auditing and evaluating government entities, including Government Companies.
The C & AG compiles the audit findings and submits a comprehensive report to the Legislature, summarizing the financial status and performance of various government bodies.
This report is a critical tool for legislative oversight and decision-making. So, the Legislature receives the information indirectly through the C & AG’s report.
d) The company secretary:
The company secretary typically serves as an administrative officer responsible for managing the company’s corporate affairs, maintaining corporate records, and ensuring regulatory compliance.
While the company secretary may assist in the audit process by providing necessary documentation and facilitating communication, the statutory auditor’s report is not directly submitted to the company secretary.
Instead, the audit report is submitted to the appropriate government authority, which, in the case of a Government Company, is the C & AG, as explained in option (b).
In summary, for a Government Company, the correct procedure involves the statutory auditor submitting the audit report to the Comptroller and Auditor General (C & AG).
The C & AG plays a pivotal role in ensuring the proper use of public funds and transparency in government operations. The C & AG’s audit report is then presented to the Legislature for oversight and further action.
This process is essential to uphold accountability and maintain the integrity of financial operations in Government Companies, making option (b) the correct answer.