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

An auditor appointed by the CAG visits a State Social Security Organisation and asks for books, connected vouchers and documents, and wants to inspect its offices. The organisation's secretary refuses, saying only the CAG personally may demand them. Under the Code on Social Security, 2020, what is the position?

The refusal is invalid. The Code gives both the CAG and any person he appoints the same rights as in a Government accounts audit, including demanding books, accounts, vouchers, documents and papers and inspecting the organisation's offices.

  1. AThe refusal is valid because only the CAG personally can demand records
  2. BThe refusal is valid unless the appropriate Government permits the inspection
  3. CThe refusal is invalid because the person appointed by the CAG has the same rights as the CAG in auditing Government accounts, including demanding records and inspecting officesCorrect
  4. DThe refusal is valid for vouchers but not for books and accounts

Explanation

Section 116(2) gives the CAG and any person appointed by him the same rights, privileges and authority as in the audit of Government accounts, including the right to demand books, accounts, connected vouchers, documents and papers and to inspect any office. The secretary's reasoning ignores the words 'any person appointed by him'.

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