(1) During the course of audit the statement consisting of the objections raised, shall be prepared in Form L.F.A. 53 in duplicate. The objection statement should be contain the objection numbered serially and the sheets page numbered. The original copy of the objection statement shall be issued daily to the Principal Officer or the authorised officer/employee of the local authority after obtaining receipt for the same and the carbon copy shall be retained by the auditor.
(2) An account of issue of objection statement shall be maintained by the auditor in Form L.F.A. 39.
(3) The objection statement shall be returned to the auditor within three days from the date of issue or the of conclusion of the audit, whichever is earlier, with dated signature of the Principal Officer or the officer authorised by him in this behalf stating therein the action taken or proposed to be taken against the objection along with clarification, if any, called for by the auditor and replies to the audit objection.
(4) On conclusion of the audit, the objection statement issued, shall include last sheet of the objection statement in Form L.F.A. 53-A.
(5) On receipt of objection statement with replies of the Principal Officer within the time specified in sub-rule (3) the replies shall be reviewed by the auditor and the objection fully complied with shall be deleted or settled and such objection shall not be included in the draft audit report or fair copy of the objection statement.
CHAPTER-4 Audit Report