An Inspection Report (IR), containing the audit observations and recommendations is issued to the audited entities within 30 days from the completion of audit with a request to forward the comments on the observations in the Inspection Report within four weeks of receipt of the Inspection Report.

After examination of the comments to the audit observations contained in the Inspection Report, the major observations (Part-II-A paras) are processed, if considered necessary, and issued to the auditee in the form of Statement of Facts (SoF). After getting the reply to SoF from the Administrative Ministry (in case of Civil Audit)/Higher level of the Management (in case of PSUs), if considered necessary, the same are issued as Draft Para to the Administrative Ministry/Highest level of Management. On subsequent approval by Headquarter, these are featured in the Audit Report of the Comptroller & Auditor General of India.

Apart from monitoring of replies on action taken by the Management in respect of all outstanding paras of Inspection report, regular follow up to ensure compliances to the audit observations, further compliance is also ensured through Audit Committee Meetings, Half yearly report of Outstanding IRs/ Paras, etc.

In the case of paras included in Audit Reports of the C&AG, it is pursued through Action Taken Note (ATNs) by the concerned Administrative Ministry.

The Audit Paras including Standalone/Performance Audit Reports which are selected by Committee on Public Undertakings (COPU)/Public Accounts Committee (PAC) for further examination are followed up by COPU/PAC with inputs from the Administrative Ministry/Department/PSU and Audit.

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