Section 10(2) in Tamil Nadu Local Fund Audit Rules, 2016
(2)(a)The auditor shall prepare the audit report with due care that the objections are stated clearly and precisely as possible and no indisputable facts and figures find place in the report and submit the draft audit report along with the audited accounts to the authority as specified by the Director, for review and approval. The draft audit report shall be submitted within thirty days on completion of audit or on the date communicated by the approving authority, whichever is earlier, by the auditor or audit party;(b)Audit reports or audit notes shall be approved by the Head of office concerned in the following manner : -(i)by scrutiny of the draft audit report or audit notes at the office itself and offering review remarks;(ii)by conducting local passing for one or two days at the institution to verify the records;(iii)after rectifying the defects pointed out by the Director on scrutiny of the draft audit report wherever applicable;(c)The approving authority shall scrutinize the draft audit report and complete the review:Provided that the draft audit reports shall be returned to the auditor with objections by the competent authority for rectification of defects within fifteen days and the rectified draft audit report shall be resubmitted by the auditor within a period of seven days from the date on which the auditor receives such reports;(d)On receipt of rectification report from the auditor, the correctness should be verified by the competent authority and draft audit report may be approved or local passing shall be done at the institution whenever found necessary:Provided that wherever such review is conducted the draft audit report shall be approved and issued without delay;(e)If the reports are further returned for rectification, such returned reports shall be resubmitted within a period of three days from the date of receipt by the auditor. If such reports are still found to be not free from the defects as earlier noticed, the auditors are liable for penal action;(f)The Director may with specific reasons to be recorded in writing and in exceptional cases, grant extra time, for submission of the reports.
