Section 6 in Chhattisgarh State Electricity Regulatory Commission (Compliance Audit) Regulations, 2011
6. Methodology.
- 6.1 The consultant/auditor may, at any time, and shall, on being directed so to do by the Commission, cause an inspection to be made, by one or more of his officers, of any regulated entity and his books of account, records and other documents in its custody, and to investigate into the affairs of the regulated entity in a manner as deemed fit by the Commission :Provided that the regulated entity shall be given a reasonable advance notice in writing of such inspection and/or investigation.6.2It shall be the duty of every regulated entity, to produce before the consultant/auditor, all such books of account, registers and other documents and to furnish him with any statement and information relating to the affairs of the regulated entity, as the said consultant/auditor may require of him within such time as the said consultant/auditor may intimate in writing in his behalf.6.3The consultant/auditor shall collect sufficient amount of evidence to document the work performed and to serve as the basis for the conclusions reached during the course of the audit. The information gathered will be generally through.a. Data Requests - The primary method of obtaining data shall be through data requests to the concerned regulated entity. The data obtained through data requests could include financial and operational information, procedure manuals, organization charts, reports, email and voice mail records, and studies. The data may be obtained either electronically or as paper documents (depending upon the requirement).b. Site visits - The consultant/auditor shall conduct site visits to ensure accurate interpretation of the information provided by the concerned regulated entity. The consultant/auditor shall inter alia collect materials on site, observe processes, and offer an opportunity to conduct face to face interviews, as relevant to the audit.c. Interviews - The consultant/auditor may conduct interviews in person and over the phone.d. As the data are collected from the regulated entity under audit, the consultant/auditor shall compile and analyze the data. The consultant/auditor/group shall analyze information gathered from multiple sources, including earlier filings made before the Commission by such regulated entity, as well as from public records. Advance analysis may require the creation of complex spreadsheets and database, and the use of sampling to test for potential non-compliance of the Act, rules, regulations made thereunder, orders and directions issued by the Commission.e. Third party complaints - Areas of non-compliance may also be identified through third party complaints, for example, customer complaints.6.4The consultant/auditor will be required to provide full reports to the Commission, which shall contain, as a minimum :(a)a description of the reporting scope and methodology, which should include all matters specified in the terms of reference;(b)a description of the systems and procedures that have been established to comply with regulatory obligations, including the identification of relevant documentation and responsible positions.(c)a discussion of how compliance is managed, addressing generic compliance issued and any specific issues identified for that report;(d)details of any non-compliance identified and the actions being undertaken by the regulated entity to rectify them, and an assessment of the adequacy of the actions.6.5The report shall include a statement, signed by the consultant/auditor/group' which states that:(a)the term of reference have been complied with by the consultant/auditor/group in making findings and in preparing the report; and(b)the report reflects the professional opinion of the consultant auditor.6.6The consultant/auditor shall supply to the regulated entity a copy of his report.
