(1) In accordance with the provisions in columns 3 and 4 of Appendix-1 the accounts of Local Authorities shall normally be audited annually on test; cent percent or Concurrent basis. The State Government may be specific orders; amend or alter the type of audit of specific account or any category of accounts referred to in Appendix-1. The type of audit of accounts, which may be included in Appendix-1 in future shall be specified by the Director unless otherwise ordered by State Government or Authority sanctioning grant.
(2) Where; as a result normal audit or on the basis of materials otherwise brought to his notice; the Director is satisfied that special audit of whole or the part of the accounts of a particular period the concerned institution within his audit purview is necessary, he will send his recommendations to the State Government for such special audit and after receiving the consent of the State Government, shall cause to conduct such special audit. This special audit will be in addition to normal audit. Audit fee for such the special audit according to the rate specified in Appendix-2 will be payable by the concerned institution and will be treated as proper charge on its funds.