Annexure 23


o) While conducting external audit in a subsequent years the auditor will ensure that the compliance report on audit observations pointed out in the reports relating to earlier audit is made and corrective actions taken on those points are furnished in the Audit Report of the subsequent phase
p    Routine errors of omission or commission noted during the course of internal audit may be rectified on the spot.
 3)  Coverage of audit:
1 The auditor should determine the extent of checking using his professional judgment
2)   The audit would cover the entire financial and procurement transactions executed at each non-BDS accounting unit  i.e., covering all sources and application of funds by concerned units as considered necessary for the audit.
3)   The audit would also cover all cost-based consultancy or other contracts that may be entered into by the implementing agencies. 
4) Period of external Audit :
At the initial stage of the implementation of the project, an external auditor will be auditing the project accounts of MSAMB, ATMAs, autonomous training institutes like VANAMATI and NIPHT and beneficiary contributions at DDRCS level on quarterly basis. After a year of the implementation of the project the frequency of the audits will be reviewed. The requirement from the Bank is submission of an annual audited financial statements  within six months from the end of the financial year.

 III. Qualifications & Experience of Consultants for External Audit .
1) Qualifications & Experience of Consultants for External Audit is as follows:

  1. The auditor should be CA Firms  empanelled with the Comptroller & Auditor General of India under “List  of Firms for Major audits” to ensure quality of audit

  2. The Chartered Accountant shall have sufficient number of employees to handle the audit of the project (at each region of the State) break up details are (i) qualified staff & (ii) other staff (articles /

Dept/Cell: 
Finance