19. Form and contents of the audit report

Unless otherwise provided in these rules, the audit of accounts of the local authorities/local funds shall be conducted by the auditors in such manner as may be specified by the Director. The instructions issued by the Director from time to time with regard to the form of audit report, drafting of audit paras, compilation of audit report, contents of the audit report, and enclosures to the audit report shall be followed unless otherwise specified in these rules or in the Act.

In the cases of institutions which are bound to meet the audit charges under section 19 of the Act and rule 24 of these rules, a separate para showing the computation of audit charges due may be incorporated in the audit report.

There shall be two separate parts in the audit reports

1. Part showing the details of clear cases of loss on receipt side in which shall be incorporated.
   
   1. cases in which the amount, if any, received which is required to be brought into account but has not been brought into account by
      any person;
   2. in the cases of misappropriation of collections made; and
   3. cases of any deficiency or loss of money due to short realisation/non-realisation of dues which appears to have been caused by the
      negligence or mis-conduct of any person.
2. The part showing details of clear cases of loss on payment side in which shall be incorporated.
   
   1. cases of mis-utilisation of funds;
   2. cases of payments which appears to be contrary to law;
   3. cases of any deficiency/loss of any property, stock etc.
   4. cases of excess payment made; and
   5. cases of avoidable expenditure