Section 5 provides that every Board shall, every financial year, with the approval of the Minister to whom the responsibility for the statutory body concerned is assigned, appoint an auditor to audit the financial statements of the statutory body. This does not apply where the enactment establishing the statutory body provides that the Director of Audit shall audit its financial statements.
Section 7 provides that after approval by the Board (of a Statutory body), the chief executive officer shall, not later than four months after the end of every financial year, submit the annual report to the auditor. The Director of Audit shall, within six months of the date of receipt of the annual report, submit the annual report and his audit report to the Board.
Section 8 prescribes matters on which the Director of Audit should report. As per Section 8, the Director of Audit shall report to the Board whether -
(a) he has obtained all the information and explanations which to the best of his knowledge and belief were necessary for the purpose of the audit;
(b) in his opinion, to the best of his information and according to the explanations given to him, the financial statements give a true and fair view of the financial performance of the statutory body for the financial year and of its financial position at the end of the financial year;
(c) this Act and any directions of the Minister, in so far as they relate to the accounts, have been complied with;
(d) in his opinion, and, as far as could be ascertained from his examination of the financial statements submitted to him, any expenditure incurred is of an extravagant or wasteful nature, judged by normal commercial practice and prudence; and
(e) in his opinion, the statutory body has been applying its resources and carrying out its operations fairly and economically.
Section 9 provides that, on receipt of the annual report including the audited financial statements and the audit report, the Board shall, not later than one month from the date of receipt, furnish to the Minister to whom responsibility for the Statutory Body is assigned, such reports and financial statements. The latter shall, at the earliest available opportunity, lay a copy of the annual report and audited accounts of every statutory body before the National Assembly.