(1)The Chief Municipal Officer shall, after adoption of the financial statement and the balance sheet and the report of the Auditor along with Test Audit Report of the [Examiner of Local Accounts] [Substituted 'C & AG' by Bihar Act No. 7 of 2011, dated 27.5.2011.] by the Municipality, forward the same to the State Government together with a report of the action take thereon by the Municipality and shall also send copies thereof to the Auditor and [Examiner of Local Accounts] [Substituted 'C & AG' by Bihar Act No. 7 of 2011, dated 27.5.2011.].(2)If there is any difference of opinion between the Auditor and the Municipality or if the Municipality does not remedy the defects or the irregularities mentioned in the report of the Auditor within a reasonable period, the Auditor shall refer the matter to the State Government whose decision thereon shall be final and binding.
