Summary
Highlights
This chapter outlines the responsibilities of an auditable entity and the rights of auditors regarding access to information and documents. An audit is conducted with reference to the data, information, and documents of the entity being audited.
Audits can be conducted in several ways: within the audit or accounts office, using documents received by these offices, by visiting the auditable entity's office, on-site inspections, or at other designated locations. Audits can be off-site (documents brought to the audit office), on-site (auditors visit the entity or site), or remote access (at a place decided by the auditor). An audit team sent to an entity's office is led by a Team Leader or Supervisory Officer.
Auditors have the right to request documents, information, and records from the auditable entity, which is known as requisition. This can be done in advance to prepare the audit assignment or during the audit. Advance requisitions help the audit team review and plan. If an advance requisition isn't met, the officer-in-charge is responsible for ensuring documents are ready before the team arrives. Requisitions should always be in writing, or via recorded meetings or email. The officer-in-charge is responsible for fulfilling requisitions within the specified reasonable time, which depends on the nature, quantity, and urgency of the information.
The auditable entity must ensure that all information, documents, and data provided to the audit team are complete and reliable. They must also provide access to their information systems and all data if demanded by the audit, even if managed by a third party. Confidential, secret, or top-secret documents must also be provided, but the audit team must handle them confidentially as per instructions. Highly confidential personal information should also be kept confidential and used only for audit purposes unless it reveals fraud or corruption, in which case it can be reported to the concerned authority.
If an auditable entity fails to provide requested documents, information, or data, the audit office will report this to the controlling officer and the concerned ministry (e.g., Secretary of the Department for Government of India, Chief Secretary for states). The officer-in-charge of the auditable entity is held responsible for violating their statutory obligations. Such failure leads to a lack of transparency in public expenditure/revenue, which is reported to Parliament or State Legislatures. In severe cases, a single paragraph report details the specific withheld information. This can also result in a 'no certification' or a 'qualified opinion' in the audit report, or even a 'disclaimer opinion' if data is significantly withheld. This chapter is based on Section 18 of the DPC Act, which outlines the rights of auditors.