Group Officer in Charge : Ashish Tirkey, Assistant Accountant General


List of sections, functions and Branch Officers name and Contact Address


The Wing comprises of the following sections: -

(i) Headquarters’ Section

(ii) Report (ESA-II) Section.

(iii) Resident Audit Party, State Power Utilities, Kolkata (RAP/SPU).

(iv) Resident Audit Office, Calcutta State Transport Corporation, Kolkata (RAO/CSTC).

(v) Peripatetic Audit Parties (PAP)


  • Administration and co-ordination of the work of the ESA-II Wing as a whole, matters relating to Officers/staff of ESA-II Wing, preparation of programmes of field parties and inspecting officers and all matters relating to government companies/statutory corporations etc.
  • Preparation and submission of Strategic Audit Plan of ESA-II Wing (Hqrs. Section) (Rolling Plan for three years) through Report Section as per guideline issued by the Headquarters’ office for approval of AG and onward submission to the Headquarters’ office latest by 15th February of every year for approval of CAG.
  • Implementation and monitoring of Annual Audit Plan of the ESA-II Wing.
  • Preparation of tour programme for approval of the Sr. DAG (ESA-II)/DAG (ESA-II) particularly for peripatetic audit parties and Inspecting Officers based on approved Annual Audit Plan.
  • Issuance of intimation letters to the auditee units to be visited by the audit parties with the instruction to supply the records and information as may be required by the parties for conducting audit.
  • Editing and issuing of the Inspection Reports relating to all Government Companies, Government Departmental Undertaking (Commercial), and statutory corporations as submitted by the field parties
  • Watching the compliance and pursuance of Inspection Reports until all paragraphs of the Inspection Reports are fully settled and the reports closed.
  • Maintenance of Objection Book, Progress Register, Outstanding Paragraphs Register, IR Progress Control Register, IR Selection Register, Accounts Selection Register, PDP Register, Calendar of Returns, Casual leave register and Inward and Outward letter Registers
  • Maintenance of Register of Important Points (RIP) and Register of Press Clipping (RPC) and recording of results of audit in the RIP/RPC

Checking of T.A. bills of members of Audit parties including Supervising Officers with reference to tour diaries and programmes, revised programmes and casual leave register.

  • Assisting the report section in selection to topics for Performance Audit of selected companies/corporations for Audit Report (ESA-II) and fixing time schedule for the completion of Performance Audits.
  • Scrutiny of the Memorandum and Articles of Association of newly formed Government Companies and Accounting Manual of Government Commercial Undertakings.
  • Processing the draft comments under Section 143(6)(b) of the Companies Act, 2013 for approval by the AG in consonance with Head Quarter Office instructions after due verification of management/statutory auditor’s replies and for onward transmission to the Headquarters’ Office for approval.
  • Issue of directions of the CAG to the Statutory Auditors (Chartered Accountants) under Section 143(5) of the Companies Act 2013and to keep a watch over the receipt and disposal of reports after due verification by PAPs.
  • Issue of approved comments/Nil-comments/Non-review certificates in prescribed format to the Management.
  • To finalise the comments on the annual accounts of Departmentally managed undertakings and issue certificate with or without comments.
  • Evaluating performance of auditors on the basis of Statutory Auditor’s work, information received from Government/Management, PAPs and others. Arrangement is also made for submission of recommendations of AG on the performance of Statutory Auditor’s to the CAG for taking appropriate action in cases of misconduct
  • To watch the receipt of Annual Report with printed accounts and to forward two copies of the printed annual reports on accounts of the Companies/Corporation to CAG.
  • Scrutiny of draft separate audit report in respect of corporations (i.e. West Bengal Financial Corporation, Calcutta State Transport Corporation, North Bengal State Transport Corporation, South Bengal State Transport Corporation and West Bengal Industrial Infrastructure Development Corporation) submitted by PAPs for finalisation and onward transmission to Head Quarter’s for approval. 
  • Issue of approved Separate Audit Reports (SARs) to the Government as well as to the Management for laying the same before the Legislative Assembly.
  • Maintaining a liaison with the Legislative Assembly in regard to dates of laying of SARs.
  • Scrutinize Agenda Papers and Minutes of the Meeting of the Board of Directors of Government Companies and Statutory Corporation and also outcome of checking of audit team noted in the Board Minutes Register for necessary follow up.
  • To furnish necessary material to Report ESA-I Section for the chapter on Commercial Undertakings (Departmental) including the summarized financial statement for inclusion in the Audit Report of ESA-I.
  • Recovery of Audit Fee from body/ institution where CAG is the sole Auditor (viz. Calcutta State Transport Corporation, South Bengal State Transport Corporation, North Bengal State Transport Corporation, West Bengal Industrial Infrastructure Development Corporation and West Bengal Electricity Regulatory Commission).






Annexure A


Headings of Strategic Plan of Economic Sector Audit-II Wing-2xxx-2xxx {For three years}








Our Core Values


Rolling Strategic Plan


Plan priorities of Government of West Bengal


Plan priorities of Government of West Bengal

  1. Power Sector
  2. Industries
  3. Information Technology
  4. Tourism Department


Risk Assessment


Thrust Areas


Focus areas: Government of West Bengal


Investment and Industrial Policy of West Bengal

  1. Vision Statement of the Policy
  2. Mission Statement of the Policy


Focus Sectors and Policy Initiatives


Audit approach and methodology

  1. Financial Audit
  2. Compliance audit
  3. Performance Audit


Audit Methodology




Integrated Audit


Financial Audit


Audit of Accounts of the Public Sector Undertakings


Audit of World Bank aided projects and Utilisation Certificates


Compliance audit and performance audit


Implementation strategy


Individual Audit Plan


Structural constraints


Capacity Building


Quality Assurance and Control




Year-wise Audit Plan


Audit Plan 20xx-xx

  1. Performance Audit
  1. Type of Audit
  2. Theme
  3. Sub-Theme
  4. Topic
  5. PSUs to be covered





 [Ref:389/ER/Co-ord/St. Audit Plan/2013-14/39-2013 dated 29-04-2013]



Para 1.02 (xxiv)

Separate Audit Report of the Comptroller & Auditor General of India on the Accounts of (name of the AB) for the year ended 31 March 2XXX

  1. We have audited the attached Balance Sheet of ___________(indicate name of the AB) as at 31 March 2XXX and the Profit and Loss Account/Income & Expenditure Account/Receipts & Payment Account (strike out which is not applicable) for the year ended on that date under Section 19(2)/19(3)/20(1)/20(2) (mention appropriate Section) of the Comptroller & Auditor General’s (Duties, Powers & Conditions of Service) Act, 1971 read with Section _______of the _________Act, ________. (mention the relevant section of the governing Act of the AB and the Act).  The audit has been entrusted for the period upto …………….. {mention in case of Section 19(3)/20(1)}.  These financial statements include the accounts of _______units/branches of the AB (strike out if not applicable).  These financial statements are the responsibility of the AB’s management.  Our responsibility is to express an opinion on these financial statements based on our audit.
  2. This separate Audit Report contains the comments of the Comptroller & Auditor General of India (CAG) on the accounting treatment only with regard to classification, conformity with the best accounting practices, accounting standards and disclosure norms, etc. Audit observations on financial transactions with regard to compliance with the Law, Rules & regulations (Propriety and Regularity) and efficiency-cum-performance aspects, etc., if any are reported through Inspection Reports/CAG’s Audit Reports separately.
  3. We have conducted our audit in accordance with auditing standards generally accepted in India.  These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatements.  An audit includes examining, on a test basis, evidences supporting the amounts and disclosure in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of financial statements.  We believe that our audit provides a reasonable basis for our opinion.

4          Based on our audit, we report that:

    1. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purpose of our audit;
    2. The Balance Sheet and Profit and Loss Account/Income & Expenditure Account/Receipt & Payment Account dealt with by this report have been drawn up in the format approved by the (mention the name of the authority approving the format) under Section/Rules (mention the relevant section of the Act governing the AB and the Act).
    3. In our opinion, proper books of accounts and other relevant records have been maintained by the _______________[Name of AB] as required under section (mention the relevant section of the Act governing the AB and he Act) in so far as it appears from our examination of such books.
    4. We further report that
      1. Balance Sheet
      2. Profit & Loss Account/Income & Expenditure Account
      3. Receipt & Payment Account
      4. Accounting Policies
      5. General

{Note: Significant audit observations on financial statements may be classified into above categories and non-compliance, if any, of the Accounting Standards may be mentioned under respective category referring to any mandatory requirements to follow Accounting Standards by the AB}

  1. Grants in aid

       Out of the grants in aid of Rs …………… crore received during the year, the organization could utilize a sum of Rs ………………crore leaving a balance of Rs …………crore as unutilised grant as on 31st March 2XXX (Please mention if  applicable)

  1. Management letter : Deficiencies which have not been included in the Audit Report have been brought to the notice of the ………….through a management letter issued separately for remedial/corrective action.  (Please mention this comment, if any management letter is being issued)
    1. Subject to our observations in the preceding paragraphs, we report that the Balance Sheet and Profit and Loss Account/Income & Expenditure Account/Receipt & Payment Account dealt with by this report are in agreement with the books of accounts.
    2. In our opinion and to the best of our information and according to the explanations given to us, the said financial statements read together with the Accounting Policies and Notes on Accounts, and subject to the significant matters stated above and other matters mentioned in Annexure-I (number of annexures may be mentioned in case where there are more than one annexure to the Audit Report) to this Audit Report give a true and fair view in conformity with accounting principles generally accepted in India.
      1. In so far as it relates to the Balance Sheet, of the state of affairs of the ___________(Name of AB) as at 31 March 2XXX; and
      2. In so far as it relates to Profit and Loss Account/Income & Expenditure Account of the profit/loss/surplus/deficit for the year ended on that date.

5.       A review of accounts showing the summarized financial results of the AB for the last three years is given in Annexure-II (Para applicable where a review of accounts is issued to the AB).



For and on behalf of the C&AG of India

              Principal Accountant General/Accountant General

Director General of Audit/Principal Director of Audit





Annexure-I to (Annexure)-B

It should contain the following comments/observations:

  1. Adequacy of Internal Audit System: Whether internal audit system is adequate and commensurate with the size and nature of the AB. Deficiencies and weakness in the system and recommendations for improvement/strengthening of internal audit system.
  2. Adequacy of Internal Control System: Whether internal control system is adequate and commensurate with the size and nature of the AB. Deficiencies and weakness in the system and recommendations for improvement/strengthening of internal control system.
  3. System of Physical verification of fixed assets: Whether fixed assets have been physically verified by the management at reasonable intervals.  Whether any material deficiencies were noticed on physical verification and if so, the same have been properly dealt with in the books of accounts.
  4. System of Physical verification of inventory: Whether the physical verification of inventory has been carried out by the management at reasonable intervals.
  5. Regularity in payment of statutory dues: Whether the AB is regular in depositing undisputed statutory dues including Provident Fund, Employees’ State Insurance, Income Tax, Service Tax, Custom Duty, Cess and any other statutory dues at the close of financial year outstanding for more than six months from the date they became payable.
  6. Any other observation on the functioning of the Corporation which suggests a significant risk to financial reporting.

Annexure-II to Annexure-B

(to form part of Audit Report where Review of Accounts is issued)

Review of Accounts of (name of the AB) for the year ended 31st March 2XXX by the Comptroller and Auditor General of India.


NOTE: This Review of Accounts has been prepared without taking into account the audit observations/comments contained in the Audit Report of the Comptroller and Auditor General of India.

(The above note should be mentioned before summarized financial results of the AB)



(Referred to in Paragraph 1.07)

Folder for Government Companies/Corporations

(Model Form)

In order to serve as a guide to audit/reference book, a folder shall be maintained in respect of each institution.



Introduction-Formation/Historical Background.


Main objects (as laid down in Memorandum).


Names of Units/Branches and their location.


Line of production/activities actually undertakes with installed capacity.


Brief mention about the process of manufacture.


Organisation set up (in the form of a chart preferred and delegation of duties/responsibilities).


Capital structure (authorized, issued and paid-up capital, Government contribution, private participation).


Borrowing (Loan from Government/Industrial/Financial corporation/Banks/West Bengal Financial Corporation) with details of default, etc.


Cash credit arrangement with maximum limit and guarantee.


Expansion Schemes.


Details of contract with foreign firm: -

    1. Technical Consultation.
    2. Turnkey agreement.
    3. Erection and installation.
    4. Other agreements.


The various items of work to be done in audit are listed below. The points to be specially seen have been mentioned in the chapter for a particular concern in this manual. The folder may be revised suitably with addition/alteration of items: -



Cash Book – General review.


Petty Cash Book – General review.


Salaries and Wages Book: -

Stage allowed, method of fixation, rate of increment allowed, analysis of wages and allocation/apportionment of the same to job. Verification of leave granted with availability, etc.


Purchase – Major Examination of purchase transaction both local and foreign.


Purchase Return Book.


Sales Book – General review.


Bills receivable and bills payable books-General review.


Journal Book-General review


Creditor’s Ledger-Examination of individual accounts, reconciliation of individual accounts with these in Central Accounts.


Debtor’s Ledger-Examination of overdue accounts, provision for bad debts, adjustment of advances, periodical reconciliation with statement of accounts.


Nominal ledger-Examination of the following items with special reference to last year’s profit, Rent, Rates, Salaries, Wages, Insurance, Telephone, Printing and Stationery, Discounts, Interest etc.


Stock-Valuation Method


Provision relating to depreciation, bad debts, income tax, and other taxes, accrued interest on loans.




Maintenance of Stationery Book etc.


Plant and Machinery Register.


Physical Inventory.


Examination of construction expenses estimates, invitation of tender, comparative statement, terms of contracts, periodical measurement with semi-class contracts, advance payments, guarantee clauses, obligations of the company for the execution of the contract, etc.


Examination of Costing Records - Booking of direct-materials, labour, apportionment of overhead, production programme and fulfillment.


Examination of the documents relating to: -

    1. Transport
    2. Packing
    3. Workshop

Examination of Agenda and minutes of the Meetings of the Board of directors and committees.


Examination of General Items:-

  1. Sufficiency of depreciation, method applied
  2. Reserves appropriated – classification
  3. Sufficiency of working capital
  4. Debt equity ratio
  5. Ways and means position
  6. Stock/stores/inventory control
  7. Preparation of budget, if any
  8. Selling organisation
  9. Capitalisation of expenses
  10. Pricing policy followed
  11. Internal control system
  12. Quantum and periodicity of Internal Audit
  13. Cash flow/fund flow statement
  14. Tax clearance certificate (Corporation Tax, Sales Tax, etc.)
  15. General State of Books and Records, etc.


Constitutional Provisions, Act and regulations

Audit of Government Public Sector Undertakings


The powers of the Comptroller and Auditor General of India (CAG) are derived from the provisions of Articles 149 to 151 of the Constitution of India. The CAG’s Duties, Powers and Conditions of Service (DPC) Act, 1971 (Act No.56 of 1971) was passed in 1971 (amended in 1976, 1984 and 1987) under Articles 148 (3) and 149 of the Constitution to regulate the duties, powers and conditions of service of the CAG. The mandate of CAG of India for Systems Audit is governed under Sections 13, 14, 16, 17, 18, 19 and 20, as the case may be, read with Section 23 of this Act. Further, in pursuance of Section 23 of the CAG’s (DPC) Act, 1971, the CAG of India issued the Regulations on Audit and Accounts, 2007. These Regulations apply to the ministries and departments of the Union Government, State Governments and Union Territory Governments as well as bodies, authorities and enterprises, to which the audit or accounts jurisdictions of the CAG of India extend.

No law of a State Legislature can cast any duties or confer any duties or confer any power on the CAG of India or his representatives. Likewise, the duties and powers of the CAG of India prescribed by law made by Parliament cannot be superseded or abridged by or under any law made by any State Legislature.

1.2       Audit of Government Companies

1.2.1    Mandate

Mandate of the C&AG in regard to audit of Government companies

The Section 19(1) of the CAG’s (DPC), Act 1971 provides that the audit of the accounts of Government companies shall be performed and exercised in accordance with the provisions of Section 143(6) of the Companies Act, 2013.

The accounts certified by the Chartered Accountants appointed by the CAG under Section 143(5) the Companies Act, 2013 are subjected to supplementary or test audit under Section 143(6) the Companies Act, 2013 by the CAG of India. The Section 143(5) the Companies Act, 2013 empowers the CAG to issue directions to the Chartered Accountants on the manner in which the Company’s accounts shall be audited. The CAG gives his comments or supplements the report of the Chartered Accountants under Section 143(6) the Companies Act, 2013.



1.2.2    Audit of corporations set up by or under law made by Parliament

The Section 19 (2) of the CAG’s DPC, Act 1971 provides that the CAG in relation to the audit of the accounts of Corporation established by or under law made by Parliament shall be performed and exercised by him in accordance with the provisions of the respective legislations.

In respect of the Calcutta State Transport Corporation, South Bengal State Transport Corporation and North Bengal State Transport Corporation, the CAG is the sole auditor under Section 19 (2) of the CAG’s DPC Act, read with the Section 33 (2) of the Road Transport Corporation Act, 1950 while in respect of West Bengal Industrial Infrastructure Development Corporation, the CAG is also the sole auditor under the aforesaid Section of the DPC Act read with the Section 25(2)(b) West Bengal Industrial Infrastructure Development Corporation Act. 1974.

Moreover, the accounts of West Bengal State Warehousing Corporation and West Bengal Financial Corporation certified by the Chartered Accountants appointed by the State Government are audited by the CAG independently under Section 31(8) of the Warehousing Corporation Act, 1962 and Section 37(6) of the West Bengal State Financial Corporation Act, 1951 respectively.

1.2.3    Audit of State Corporations and other bodies and authorities entrusted to the C&AG

Section 19(3) of the Act ibid provides that the Governor of a State or the Administrator of a Union Territory having a legislative assembly may, where he is of the opinion that it is necessary in the public interest so to do, request the CAG to audit the accounts of a corporation established by law made by the legislature of the State or of the Union Territory, as the case may be, and where such request has been made, the CAG shall audit the accounts of such corporation and shall have, for the purposes of such audit, right of access to the books and accounts of such Corporation.

The Government of West Bengal entrusted to the CAG the audit of West Bengal Industrial Infrastructure Development Corporation, West Bengal Scheduled Castes and Scheduled Tribes Development and Finance Corporation, West Bengal Minority Development and Finance Corporation and West Bengal Backward Classes Development and Finance Corporation under Section 19 (3) of the CAG’s DPC Act, 1971. Out of that the CAG office entrusted the audit of West Bengal Industrial Infrastructure Development Corporation to Economic Sector Audit II (ESA-II), Office of the AG (E&RSA) and audit of all other Corporations are entrusted to the Office of the Pr. Accountant General (G&SSA).

1.3       Applicability of the various sections of the Act

The duties and powers of the CAG with reference to the audit of Government Companies and autonomous bodies flow from statute. However, it is also desirable to persuade the Governments to include in the conditions of grants, loans or investments an enabling clause to the effect that the books and accounts of the recipient institutions shall be made available to the CAG for his scrutiny or audit wherever and whenever, necessary. It is clarified in this connection that provisions of Section 18 of the Act are applicable to audit under Sections 14, 15, 19 or 20 as they are applicable to audit under Sections 13 and 16 of the Act.

(C A G’s Manual of Instructions for Audit of Autonomous Bodies)

1.4       Guiding Principles in the audit of Public Sector Undertakings

The guiding principles for public Sector Undertakings (PSU) is “Efficiency cum Performance Audit” rather than verifying regularity of expenditure against sanctions or appropriations. The main object of audit is to see how far the auditee organisation has achieved the objectives for which it has been established and whether the operations are being carried on efficiently with due regard to the economy. In this process, audit has to appraise the soundness or otherwise of various decisions of the management, in regard to the construction and operation of undertakings. By its very nature, it is not and cannot be a purely financial audit.

(CAG’s letter No. 626/CA IV/8, dated 25.11.1969)

The auditee units coming under the audit control of ESA-II wing have generally an organized financial accounting system. In Government companies as well as in some statutory corporations, the accounts are audited by the statutory auditors. In such undertakings commercial audit wing may not cover the same field as covered by the internal auditors or statutory auditors and may be limited to some percentage of audit checks on various types of transactions.

The routine checks are exercised by the Accounts and Internal Audit wing of the undertakings. However, it has to be seen that internal audit adequately covers the entire field of operations that is functioning effectively, that its reports are properly considered at appropriate level and that necessary action is taken on them. In such cases of routine audit, if it is taken up at all, will be of negligible quantum and the main purpose in such cases would be to see how far internal check operates effectively. Audit in this regard should be confined to efficiency-cum-propriety audit, the broad principles of which have been laid down in Manual of Standing Orders (Audit).

These apart, the statutory auditors are required to submit a special report, on completion of their audit of a Government Company, on the various points, covered by the directions of the CAG issued to them. The report not only gives information on various matters but also secures that the statutory auditors have discharged their functions well and with reasonable degree of efficiency. In view of this, there is no necessity to cover the entire field again particularly on application of routine audit checks.

The annual accounts of these concerns (particularly Balance Sheet, Profit and Loss Accounts and subsidiary schedules) are certified by the statutory auditors. Since the routine check have already been exercised by the internal auditor/statutory auditors, it is not necessary that similar checks should be exercised by our audit. However, while certifying the correctness of annual accounts, certain checks will have to be conducted. It will be necessary to see that annual accounts have been properly drawn up on the basis of records, already checked.

(CAG’s letter No. 216/CA/61-1965, dated 02.02.1966)

ESA-II Wing performs its audit functions in harmony with the Auditing Standards promulgated by the CAG, which are consistent with the International Organisation of Supreme Audit Institutions (INTOSAI) Auditing Standards. CAG’s Auditing Standards 4.9 in chapter I (corresponding INTOSAI Auditing Standards 1.0.38) defines the scope of audit as under:

“The term ‘Audit’ includes financial audit, regularity audit and performance audit” It further adds that in pursuance of the constitutional responsibility, the CAG is empowered to decide the nature, scope, extent, and quantum of audit to be conducted by him or on his behalf.

Further, the objectives of audit of accounts or audit of receipts & expenditure of Government Companies/Bodies and authorities under Sections 14, 19 and 20 of the Act are three-fold. The first is to check that transactions comply to relevant laws, rules and regulations, (Compliance Audit), the second is concerned with the certification of annual accounts (Financial Audit), and third is to conduct Performance audit to assess economy, efficiency and effectiveness of various activities/programmes undertaken by these Government Companies/Bodies and authorities (Performance Audit). The scope of audit under all these sections can cover all these objectives depending on the facts of each case. In practice, however, the certification of annual accounts is undertaken only under the provisions of sections 19 and 20.

(C A G’s Manual of Instructions for Audit of Autonomous Bodies)

1.4.1    Supplementary Audit:

Duly adopted and audited accounts to be made available to Audit

The company shall make available the balance sheet and the profit and loss account and any other statements or documents declared under the Companies Act, 2013 to be part of or annexed to the balance sheet and the profit and loss account (called annual accounts) duly adopted by the board of directors and audited by the statutory auditor to the AG within three months after the close of the year of accounts for timely finalisation and issue of comments of the CAG, and for consequently holding the annual general meeting of the company within the time stipulated in the Companies Act, 2013.

It is the statutory auditor who is primarily responsible for expressing an opinion on the accounts of the company. Supplementary audit of the accounts by the CAG is, by its very definition, mainly an instrument of quality control of financial audit of accounts that begins with careful selection of the statutory auditor and continues with the ongoing oversight of his work including review of the conclusions drawn in his audit report. The scope of supplementary audit of annual accounts of a Government company and a deemed Government company by the CAG shall include an examination of selected accounting records and a review of the audit report of the statutory auditor including the opinion expressed by him on the annual accounts of the company. The supplementary audit of the Companies and Corporations is conducted mainly by reference to the Accounting Standards and Auditing & Assurance Standards issued by the Institute of the Chartered Accountants of India. In any area where standards are still to be put out by the Institute of Chartered Accountants of India (ICAI), the International Accounting Standards are adopted as guidelines. Further, if the accounts of the Company certified by the Statutory Auditor, have misrepresented any fact or overlooked any material fact, they are commented upon by CAG’s Audit. The supplementary audit is aimed at ensuring that the accounts represent a “true and fair view” of the financial position of the Company and are in conformity with the provisions of the Companies Act. The significant and material observations made in supplementary audit shall be issued as comments of the CAG under the Companies Act, 2013 after due consideration of the views, if any, of the statutory auditor and the management of the company. The comments on the Accounts are required to be placed before the Annual General Meeting of the Company.

(Regulations on Audit and Accounts, 2007, Chapter 9)

1.4.2    Certification of accounts of autonomous bodies set up by or under law made by Parliament and Audit of State Corporations and other bodies and authorities entrusted to the C&AG

Provisions relating to audit of Statutory Corporations, Autonomous Bodies and Authorities are contained in Sections 14, 19(2), 19(3) and 20 of the CAG’s DPC Act, 1971. The certification of accounts is “the independent examination of and expression of an opinion on the financial statements of an entity by an appointed auditor in pursuance of the terms of appointment and in compliance with statutory obligation”

Applicable standards and verifications required in audit of accounts

Where the CAG is the sole auditor of a corporation, the financial audit is conducted in accordance with the auditing standards issued by the CAG. Audit shall verify whether systems and procedures are in place and implemented to ensure that the accounts

(1)        Comply with the requirements of the applicable law(s), rules and administrative instructions;

(2)        Comply with the accounting standards prescribed by the Institute of Chartered Accountants of India;

(3)        Contain adequate disclosures in respect of financial transactions; and

(4)        Present a true and fair view of the corporation’s financial position.

On the completion of financial audit, the AG (after approval of the CAG of India) shall send the audit certificate and the separate audit report which will form part of the audit certificate on the accounts of the corporation to the Secretary to Government of the concerned department with a copy to the Chief Executive Officer of the corporation after completion of accounts audit. The separate audit report and audit certificate on the accounts are required to be placed in the Assembly.

(Regulations on Audit and Accounts, 2007, Chapter 8)

1.4.3    Transaction Audit: Scope of test audit by the C&AG

In addition to the supplementary audit of annual accounts of a Government company or a deemed Government company, the CAG may conduct test audits during the year. This audit shall cover transactions entered into by the company with a view to examining their regularity, propriety, probity, economy, efficiency and effectiveness and report on cases of failure of compliance with laws, rules and regulations, waste, mismanagement, other irregularities and frauds and corruption. The scope of test audit may extend to more than one financial year.

(Regulations on Audit and Accounts, 2007, Regulation 136 of Chapter 9.)

It covers also audit against Waste and Value for Money (VFM) audit. The audit includes examination of transactions in sales, purchases, contracts, pricing, costing, material management, outstanding dues, inadequacies in control systems, comparison of performance with standards of performance laid down, improper decisions leading to waste, internal audit, productivity, financial and physical performance, attention to environmental problems, energy conservation, capacity utilisation, investment decisions, project implementation etc. Audit is not limited to financial (vouching) or compliance (regularity) audit. The scope and extent of audit is determined by the Pr. AG (E&RSA), West Bengal as per Manual of Standing Orders (Audit) issued by the CAG.

1.5       Special Audit

1.5.1 Request for special audit

(1)        The CAG or any officer so authorised shall give due consideration to a request for special audit of a programme, project or organisation within the audit jurisdiction provided that every such request:

(a)        Is made with the approval of the Secretary to Government of the concerned department;

(b)        Shall state the justification and reasons that necessitate a special audit, including the results of any preliminary inquiry, investigation or study that may have already been conducted; and

(c)        Specify the period to be covered in the special audit.

(2)        The decision of the CAG or any officer so authorised in regard to the special audit shall be final.

(Regulations on Audit and Accounts, 2007, Regulation No 17 of Chapter 3)

Besides the AG may also receive requests from the Sate Government or Management of the Government companies/corporation to undertake special audit.

 Branch officers Name and Contact address

Sl. no.

Name of the Branch Officer (Shri)


Contact Number


Arindam Basu,Sr. AO/ESA-II(HQ)

3rd MSO Building CGO Complex,DF-Block,Sector-I,Salt Lake,Kolkata -64

033-23586886, Ext-244


V. Sambhamurty,Sr.AO/ESA-II(Report-I)

033-23586886, Ext-273


Rabi Shankar Prasad, Sr.AO/RAP(SPU)

State Power Utilities Vidyut Bhavan,10th Floor,’B’ Block, Salt Lake,Kolkata-700091



Indranil Pal, Sr.AO/RAO(CSTC)

Calcutta State Transport Corporation

 5, Nilgunj Road





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