[The Authority shall maintain proper accounts and other relevant records and prepare an annual statement of accounts including the balance sheet in such form as the State Government may specify.
(2) The accounts of the Authority shall be subject to audit annually by the Examiner, Local Fund Accounts:
Provided that in place of or in addition to the Examiner, Local Fund Accounts, the State Government may entrust and audit to the Accountant General, Uttar Pradesh or Comptroller and Auditor General of India or to any other Auditor on such terms and conditions, in such manner, for such period and at such times as may be agreed upon between him and the State Government.
(3) The rights, authority and privileges of any person conducting audit under Sub-Section (2) shall -
(i) in the case of Examiner, Local Fund Accounts, be the same as he has in connection with the audit of the accounts of local authority;
(ii) in the case of the Accountant General, Uttar Pradesh or as the case may be, the Comptroller and Auditor General of India, be the same as he has in connection with the audit of Government accounts, and
(iii) in the case of any other auditor, be as prescribed; and, in particular, he shall have the right to demand production of books, accounts, connected vouchers, papers and other documents and to inspect the office of the Authority.
(4) The accounts of the Authority, as certified by the Auditor or any person appointed by him in that behalf, together with audit report thereon shall be forwarded to the State Government annually or at such times as may be directed by it. The State Government may issue such directions to the Authority as it may deem fit and the Authority shall be bound to comply with such directions.
(5) Any expenditure, incurred by the Auditor in connection with the audit shall be payable by the Authority to the auditor.]