There is a misconception regarding CAG audit on private entities. CAG is authorized to audit the Gov. Accounts of Union and the States. CAG is not actually auditing the private parties. That is audited by their auditors appointed under the respective law governing them. Actually CAG is auditing only the part of the Gov. Accounts maintained by the private parties and absolutely connected with it and not more than that. I was involved in certain such audit in some private banks long back. But it cannot be considered that it was an audit of the private banks. CAG is not even auditing public sector banks. Another type of audit is related to grants given to private parties and its audit. In such cases, the terms of the grant would decide the sphere of audit. Again it is related to the use of Government grant with reference to the accounts of the private party. Even in the case of excise duty, service tax, etc., this is the case. Such a dispute arose in respect of RBI audit. I was involved in the dispute. I do not want to elaborate it now, since it is going to be included in the 2nd part of my book "A FRAUD IN THE INDIAN CONSTITUTION" under preparation now.
[ Also read my books:
1- A FRAUD IN THE INDIAN CONSTITUTION (eBOOK/PAPERBACK): http://www.amazon.in/FRAUD-INDIAN-CONSTITUTION-M-P-JOSEPH/dp/9352353986
2- LTC RULES MADE EASY: https://www.amazon.in/LTC-RULES-MADE-EASY--date-ebook/dp/B01JO66SLK ]