Auditor General´s (Functions, Powers, Terms and Conditions of Service) Ordinance, 2001

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THE AUDITOR GENERAL’S (FUNCTIONS, POWERS, TERMS 
AND CONDITIONS OF SERVICE) ORDINANCE, 2001  
  
 
 
 
 
 
 
CONTENTS 
__________ 
 
1 Short title, extent and commencement. 
2 Definitions. 
3 Salary, pension etc. 
4 Term of office. 
5 Resignation. 
6 Leave. 
7 Auditor­General to certify accounts. 
8 Provisions relating to Audit. 
9 Audit of receipts and expenditure of holders of authorities substantially financed by
 loans and grants. 
10 Auditor­General to give information and undertake studies, etc. 
11 Functions of Auditor­General in the case of grants or loans given to other authorities or 
 bodies. 
12 Audit of receipts of Federation or of Provinces or of districts. 
13 Audit on accounts of stores and stock. 
14 Powers of Auditor­General in connection with audit of accounts. 
15 Audit of companies and corporations established in the public sector. 
16 Audit of accounts of certain authorities or bodies. 
 
 

 
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17 Power to dispense with detailed audit. 
18 Delegation of powers. 
19 Budgetary provisions. 
20 Power to amend the Schedule. 
21 Power to make rules. 
22 Power to make regulations. 
23 Repeal. 
The Schedule 
 
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THE AUDITOR GENERAL’S (FUNCTIONS, POWERS, TERMS AND 
CONDITIONS OF SERVICE) ORDINANCE, 2001  
 
ORDINANCE No. XXIII OF 2001  
[17th May, 2001] 
An  
 
Ordinance 
 
to determine the terms and conditions of service, the term of office and the powers  and functions of 
the Auditor­General of Pakistan  
 WHEREAS it is expedient to determine, the terms and conditions of service, the term of 
office and the powers and functions o f the Auditor General of Pakistan and for matters connected 
therewith or incidental thereto;  
 AND WHEREAS the National Assembly and the Senate stand suspended in pursuance of 
the Proclamation of Emergency of the fourteenth day of October, 1999, and the Pro visional 
Constitution Order No. 1 of. 1999; 
 AND WHEREAS the President is satisfied that circumstances exist which render it necessary 
to take immediate action; 
 NOW, THEREFORE, in pursuance of the Proclamation of Emergency of the fourteenth  day 
of October, 1999, and the Provisional Constitution Order No. 1 of 1999, read with the Provisional 
Constitution (Amendment) Order No.9 of 1999, and in exercise of all powers enabling him in  that 
behalf, the President of the Islamic Republic of Pakistan is plea sed to make and promulgate the  
following Ordinance:— 
 1. Short title, extent and commencement .__(1) This Ordinance may be called the 
Auditor­ General's (Functions, Powers and Terms and Conditions of Service) Ordinance, 2001. 
 (2) It extends to the whole of Pakistan. 
 (3) It shall come into force on the first day of July, 2001. 
 2. Definitions.__(1) In this Ordinance, unless there is anything repugnant in the subject 
or context,— 
(a) “accounts” in relation to commercial undertakings of a Government, includes 
trading, manufacturing and profit and loss accounts and balance  sheets and 
other subsidiary accounts; 
(b)  “Auditor­General” means the Auditor­General of Pakistan appointed under 
Article 168 of the Constitution of the Islamic Republic of Pakistan; 
(c) “Controller General of Accounts ” means the Controller General of  Accounts 
appointed under the Controller General of Accounts (Appointment,  Functions 
and Powers) Ordinance, 2001; 
(d)  “regulations” means regulation made under this Ordinance; and 
 
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(e)  “rules” means rules made under this Ordinance. 
 3. Salary, pension etc.—The salary, pension and other terms and conditions of service of 
the Auditor General shall be as provided in the Schedule to this Ordinance. 
 4. Term of office. —The Auditor­General shall, unless he sooner resigns or is removed  from 
office in accordance with the Constitution, hold office for a fixed term of five years from  the date on 
which he assumes such office or he attains the age of sixty­five years whichever is earlier. 
 Explanation.— For the purpose of this section the term of five years in respect of  the 
Auditor­ General holding office immediately before the commencement of this  Ordinance shall be 
computed from the date on which he had assumed office. 
 5. Resignation.—The Auditor­General may, at any time, by writing under his hand addressed 
to the President resign his office. 
 6. Leave. __(1) The Auditor­General may be granted leave on such terms and  conditions as 
the President may, by order published in the official Gazette, prescribe. 
 (2) The power to grant or refuse leave to the Auditor­General, and revoke or curtail leave 
granted to him, shall vest in the President. 
 7. Auditor­General to certify accounts. —The Auditor­General  shall, on the basis of such 
audit as he may consider appropriate and necessary, certify the accounts, compiled and 
prepared by Controller General of Accounts or any other person authorized in that behalf, for each 
financial year, showing under the respect ive heads the annual receipts and disbursements for the 
purpose of the Federation, of each Province and of each district, and shall submit the certified 
accounts with such notes, comments or recommendations as he may consider necessary to the 
President or the Governor of a Province or the designated District Authority, as the case may be. 
 8. Provisions relating to Audit. —The Auditor­General shall __ 
(a)  audit all expenditure from the Consolidated Fund of the Federation and of each 
Province  and to ascertain whether the moneys shown in the accounts as 
having been disbursed were legally available for, and applicable to, the service 
or purpose to which they have been applied or charged and whether the 
expenditure conforms to the authority which governs it; 
(b)  audit all transactions of the Federation and of the Provinces relating to Public 
Accounts; 
(c)  audit all trading, manufacturing, profit and loss accoun ts and balance sheets 
and other subsidiary accounts kept by Order of the President or of the 
Governor of a Pr ovince in any Federal or Provincial Department; and 
(d)  audit, subject to the provisions of this Ordinance, the accounts of any 
authority or body established  by  the  Federat ion  or  a  Province,  and  in 
each case to report  on  the expenditure, transactions or accounts so audited by 
him. 
  
 
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 9. Audit of receipts and expenditure of holders of authorities substantially financed 
by loans and grants.—Where any body  or authority is substantially financed by loans or 
grants from Consolidated Fund of Federal Government or of any Province or of any district, the 
Auditor­General shall, subject to the provisions of any law for the time being in force applicable 
to the body or authority, as the case may be, audit the accounts of that body or authority. 
 Explanation. __ Where the loans or grants to a body or authority from the Consolidated Fund 
of Federal Government or of any Province or of any District in a financial year is not less than five 
million rupees and the amount of such grant or loan is not less than fifty per cent of the total 
expenditure of that body or authority, such body or authorit y shall be' deemed, for the purposes of 
this section, to be substantially financed by such loans or grants as the case may be. 
 10. Auditor­General to give information and undertake studies , etc.— The 
Auditor­General shall, in so far as the accounts enable him so to do, give to the Federal Government, 
the Provincial Governments and the District Government, as the case may be, such information and 
to undertake such studies and analysis as they may, from time to time require. 
 11. Functions of Auditor­General in the case of grants or loans given to other 
authorities or bodies.— 1) Where any grant or loan is given for any specific purpose from the 
Consolidated Fund of Federal Government or of any Province or of any district to an y authority or 
body, not being a foreign State or international organization, the Auditor­General may scrutinize the 
accounts by which the sanctioning authority satisfies itself as to the fulfillment of the conditions 
subject to which such grants or loans were given and for this purpose have the right of access, after 
giving reasonable previous notice, to the books and accounts of that authority or body: 
 Provided that the President, the Governor of a Province or the authority of a district, as the 
case may be, is of the opinion that it is not necessary to do so in the public interest. 
 (2) While exercising the powers conferred on him by sub­section (1), the Auditor­General 
shall not have right of access to the books and accounts of any authority or body if the law, by or 
under which such authority or body has been established, provides for the audit or the accounts of 
such authority or body by an agency other than the Auditor­General. 
 12. Audit of receipts of Federation or of Provinces or of districts.—The Auditor­General 
shall audit all receipts which are payable into the Consolidated Fund or Public Account of the 
Federal Government and of each Province and in the accounts of eac h district and to satisfy himself 
that all such receipts which are payable into the Consolidated Fund, Public Account or any district 
account have been properly and correctly deposited and rules and procedures relating to which 
receipts are  being fully observed and the systems are in place to ensure proper assessment and 
collection of government receipts. 
 
 13. Audit on accounts of stores and stock. —The Auditor­General shall have authority to 
audit and report on the accounts of stores and stock kept in  any office or department of the 
Federation or of a Province or of a district. 
 
 14. Powers of Auditor­General in connection with audit of accounts. __(1) The 
Auditor­General shall, in connection with the performance of his duties under this Ordinance, have 
authority— 
 
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(a)  to inspect any office of the accounts, under the control of the Federation or of 
a Province or of a district, including treasuries, and such offices responsible for 
the keeping of initial or subsidiary accounts; 
(b) to require that any accounts, books, papers and other documents which deal  
with, or form, the basis of or otherwise relevant to the transactions to which his 
duties in respect of audit extend, shall be sent to such place as he may direct for 
his inspection; and 
(c)  to enquire or make such observations as he may consider necessary, and to 
call for such  information as he may require for the purpose of the audit. 
 (2) The officer incharge  of any office or department shall afford all facilities and  provide 
record for audit inspection and comply with requests for information in as complete  a form as 
possible and with all reasonable expedition. 
 (3) Any person or authority hindering the audit orial functions of the Auditor­General 
regarding inspection of accounts shall be subject to disciplinary action under relevant Efficiency and 
Discipline Rules, applicable to such person. 
 15. Audit of companies and corporations established in the public se ctor.__(1) The 
Auditor­General shall perform functions and exercise powers in relation to the audit including 
supplementary audit of the accounts of the public sector companies in  accordance with the 
provisions of the Companies Ordinance, 1984 (XLVII of 1984). 
 (2) The duties and powers of the Auditor­General in relation to the audit of the accounts 
of corporations (not being companies) established by, or under, law shall be performed and exercised 
by him in accordance with the provisions of the respective laws. 
 (3) The Governor of a Province or the district authority may, where he is of opinion  that it 
is necessary in the public interest so to do, request the Auditor­General to audit the accounts of 
a corporation established under provincial law and where such request has been made, the Auditor­ 
General shall audit the accounts of such corporatio n and shall have, for the purposes of such audit, 
right of access to the books and accounts of such corporation. 
 16. Audit of accounts of certain authorities or bodies. —Save as otherwise  provided, in 
section 11 where the audit of the accounts of any body or authority has not  been entrusted to the 
Auditor—General by or under any law, he shall, if requested so to do by the President, or the  
Governor of a  Province, as the case may be, undertake the audit of the accounts of such body or 
authority and shall have, for the purposes of such audit, right of access to the books and accounts 
of that body or authority. 
 17. Power to dispense with detailed audit.—The Auditor­General may dispense with, 
when circumstances so warrant, any part of detailed audit or any accounts or of transactions and to 
apply such limited check in relation to such accounts or transactions as he may determine 1[:] 
 1[ Provided that the Auditor­General  shall exempt expenditure of secret service agencies 
certified by the Federal Government as relating to national security from the scope of the audit.] 
 
1Subs., & Added by Finance Act, 2013 ( XII of 2013), s.6. 
 
 
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 18. Delegation of powers. —Any power exercisable by the Auditor General under the 
provisions of this Ordinance, or any other law may be exercised by such officer of his department 
as may be authorised by him in this behalf by general or special order. 
 19. Budgetary provisions. —The Auditor­General shall have the full powers to incur 
expenditures within the budgetary provisions. 
 1[19A. Sanction accorded by the Auditor­General.__The President  may appoint an 
independent officer to audit sanctions to expenditure accorded by the Auditor­General. The Auditor­ 
General shall produce for inspection by that officer all books an other documents relating thereto and 
give him such information as he may require for the purpose of audit.] 
 20. Power to amend the Schedule .—The Federal Government may by notification in the 
official Gazette, amend the Schedule so as to add any entry thereto or modify or omit any entry therein. 
 21. Power to make rules.—The President may by notification in the official Gazette make 
rules for carrying out the purpose of this Ordinance. 
 22. Power to make regulations .—The Auditor­General may, with the previous approval 
of the Federal Government by notification in the official Gazette, make such regulations, not 
inconsistent with the provisions of this Ordinance and the rules made thereunder as he may consider 
necessary or expedient for carrying out the purpose of this Ordinance. 
 23. Repeal.—The Pakistan (Audit and Accounts) Order, 1973 (P.O. 21 of 1973) is hereby 
repealed. 
 
_________ 
 
 
THE SCHEDULE  
 
[See section 3] 
 
PAY,  ALLOWANCES AND PENSION 
 
The Auditor­General shall be— 
 2[(a) paid a fixed pay package equal to maximum of MP­I scale, as amended from time to  
time.] 
 (b) entitled to all such benefits including entitlement pertaining to travel, as are admissible to 
a Minister of State; and 
 2[(c) Gratuity eqaul  to one month's basic pay for each completed year of service as Auditor 
General of Pakistan.] 
 
 
 
 
 
 
 
1Ins. by Finance Act 2015, s. 7 (w.e.f. 1­7­2015).  
2Subs. by SRO 930(c)/2015 dt. 8/9/2015.