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

A State Social Security Organisation incurs expenses because the CAG's team audits its accounts for the year. Under the Code on Social Security, 2020, who ultimately bears the expenditure incurred by the CAG in connection with this audit?

The respective Social Security Organisation pays the expenditure the CAG incurs in auditing its accounts. The Code on Social Security, 2020 makes the audited body reimburse the CAG, rather than the Central Government, the CAG's office or contributing employers.

  1. AThe Central Government from the Consolidated Fund of India
  2. BThe CAG's own office, as audit is a constitutional duty
  3. CThe respective Social Security Organisation, which pays it to the CAGCorrect
  4. DThe employers who contribute to the organisation, directly to the CAG

Explanation

Section 116 states that any expenditure incurred by the CAG in connection with the audit is payable by the respective Social Security Organisation to the CAG. Employers do not pay directly, and the Central Government is not made liable.

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