Compliance to Audit Observation

Audit Management Group-I (Audit Sector)

Process of Compliance to Audit Observation

• After completion of Audit, Audit observations are incorporated in form of Inspection Report (IR) and forwarded to Auditee Units for necessary action at their end.
• The major observation (Part-II A -paras) in form of Statement of Facts (SoF) are forwarded to HoDs and after approval of the same are processed as Potential Draft Paras (PDPs).
• The PDPs are featured in Audit Report as Draft Paras (DPs)
• There are several mechanisms to enforce compliance to audit observation i.e. Broad Sheet replies, Audit Commitee Meetings, Bilateral Meetings, In-Depth Review, Review Note, Half Yearly Report of Outstanding IRs/Paras, etc.

Audit Management Group-III

• After completion of audit, the audit observations are being forwarded to audited entities in the form of Inspection Report (IR).  The major observation (part-II-A paras) which have potentiality are being forwarded to HoDs in the form of Statement of Facts (SoF).  After getting reply from the HoD about the SoFs the same are processed as Potential Draft Paras (PDPs) and subsequently featured in the Audit Report as Draft Paras (DPs).
• There exist several mechanisms for enforcing compliance to audit viz. Broad Sheet Replies, Audit Committee Meetings, Bi-lateral meetings, Half Yearly report of Outstanding IRS/ Paras, etc.
• In case of Draft paras of Audit Reports, selected paras are being discussed in the Public Accounts Committee and recommendations/Action Taken Notes are being forwarded to this end on the basis of such discussion by the PAC.