Skip to content

CS Professional · Labour Laws and Practice · Industrial and Labour Laws Audit

A Social Security Organisation's board is audited by the CAG, who incurs expenses in the process. A member argues the Government must bear this cost since the CAG is a constitutional authority. Another member says the audit is invalid because one board seat is vacant. Which statement is correct under the Code on Social Security, 2020?

The Social Security Organisation itself pays the CAG's audit expenditure, and a vacancy or defect in its constitution does not by itself allow its acts or proceedings to be questioned. Both rules come from the Code on Social Security, 2020.

  1. ABoth are correct: the Government bears the cost and a vacancy invalidates the audit
  2. BThe organisation pays the CAG's audit expenditure, and a vacancy alone does not make the organisation's acts or proceedings questionableCorrect
  3. CThe organisation pays the expenditure, but a vacancy makes its proceedings questionable
  4. DThe Government bears the cost, but a vacancy alone does not affect proceedings

Explanation

Section 116(1) makes expenditure incurred by the CAG in connection with the audit payable by the respective Social Security Organisation. Section 9(3) says no act or proceeding of the organisation can be questioned merely because of a vacancy or defect in its constitution. Hence only the second statement combination is correct.

Did you get it right without looking?

One question tells you little. A timed set on Industrial and Labour Laws Audit shows your real accuracy, how long you take and where you lose marks.

Practise Industrial and Labour Laws AuditFree diagnostic mock

More Industrial and Labour Laws Audit questions