Regulation 101 — Audit Regulations 2020
Original Rule Text
101. Forwarding of draft separate audit report
On the completion of financial audit, the audit office shall send to the Chief Executive Officer a draft separate audit report that will form part of the audit certificate on the accounts. A copy of the same shall also be sent to the Government in case it contains any observation on which reply of the Government is necessary.
What This Means
After completing the financial audit of a corporation, the audit office must send a draft separate audit report to the corporation's CEO. This draft report will eventually become part of the audit certificate on the corporation's accounts. If the report contains observations that require a government response, a copy must also be sent to the concerned government department.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Draft separate audit report is sent to the CEO after financial audit completion
- 2This report forms part of the final audit certificate on corporation accounts
- 3A copy goes to the Government only if it contains observations needing government reply
- 4The 'draft' stage gives the corporation a chance to respond before finalization
- 5This is a mandatory step — finalization cannot happen without this draft being shared first
Practical Example
After auditing the accounts of Food Corporation of India, the Principal AG (Audit) prepares a draft separate audit report highlighting irregularities in procurement payments. The draft is sent to FCI's CMD. Since some findings relate to policy directives from the Ministry of Consumer Affairs, a copy is also sent to the Ministry's Secretary for their response.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What is a 'separate audit report' and how is it different from the audit certificate?▼
Why is the report sent in 'draft' form first?▼
What if the audit office skips sending the draft to the government?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.