Regulation 103 — Audit Regulations 2020
Original Rule Text
103. Finalisation of audit certificate and separate audit report
The audit office shall consider the reply received from the corporation (and the Government if a copy is sent to it) before finalising the audit certificate and the separate audit report. In case a reply is not received within the specified period or any extended period agreed to, the audit officer may proceed on the assumption that the corporation (and the Government where a copy of the draft separate audit report is sent to it) has no comments, observation and explanation in the matter.
What This Means
Before finalising the audit certificate and the separate audit report, the audit office must consider the replies received from the corporation and the government. If no reply is received within the specified deadline (or any extended period that was agreed to), the audit office can proceed with finalization assuming the entity has no comments or explanations to offer.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Audit office MUST consider replies before finalising the certificate and report
- 2No reply within deadline = audit proceeds as if entity has no comments
- 3Extended deadlines are allowed but must be mutually agreed
- 4This protects both sides — entity gets a hearing, audit gets closure
- 5Final report may reflect the entity's response or note that no response was received
Practical Example
The AG (Audit) sends a draft report to Hindustan Aeronautics Limited (HAL) with a 2-week deadline. HAL requests a 1-week extension, which the AG agrees to. HAL sends its reply within the extended period. The AG considers HAL's explanations — some observations are modified based on the reply, while others are retained with the AG noting HAL's response alongside the original finding.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
Does the audit office have to accept the corporation's explanation?▼
Can the corporation send a late reply after the audit report is finalised?▼
Is the 'no reply = no comments' assumption a penalty?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.