Explanation :- For the purpose of this Chapter "the Auditor" shall mean the Director of Audit (Local Fund), Assam or any officer authorised by him in this behalf.

Power of the Auditor

1. (1) The Municipal Accounts as contained in the financial statement including the accounts of specific funds, if any, and the balance sheet shall be examined and audited by the Auditor.
2. (2) The Comptroller & Auditor General of India (C & AG) shall provide Technical Guidance and Supervision
   • (TGS) over the proper maintenance of accounts and audit of the Municipalities. Explanation:- The TGS over Municipalities by the C & AG of India shall include - Providing of guidance regarding maintenance of accounts, auditing standards, certification, guidelines, training for capacity building, comments on accounts and test audit of municipalities selected as a representative sample.
3. (3) The C&AG shall prepared an Annual Technical Inspection Report based on the TGS and the test check of the accounts of the Municipalities to be placed before the Board of the respective Municipality.
4. (4) The C&AG may exercise at his discretion, the right to report to the State Legislature the results of such test audit.
5. (5) The Chief Municipal Officer shall submit such further accounts to the Auditor and the C&AG as may be required.
6. (6) The Auditor may -
   • (i) require by a notice, in writing, the production before him, or before any officer subordinate to him, of any document which he considers necessary for the proper conduct of the audit;
   • (ii) require by a notice, in writing, any person accountable for, or having the custody or control of any document, cash or article, to appear in person before him or before any officer subordinate to him;
   • (iii) require any person so appearing before him, or before any officer subordinate to him, to make or sign a declaration with respect to such document, cash or article or to answer any question or prepare and submit any statement and cause physical verification of any stock of articles in course of examination of accounts.
7. (7) The Auditor or the officer subordinate to him, may report as regards any item of accounts which appears to him to be contrary to the provisions of this Act, to the Board of the Municipality.
8. (8) The Board of the Municipality at a meeting shall consider the report of the Auditor alongwith test audit report of the C&AG as early as possible and shall, if necessary, take prompt action thereon, and shall also, if necessary, surcharge the amount of any illegal payment on the person making or authorising it, and charge against any person responsible therefore, the amount of any deficiency or loss incurred due to the negligence or misconduct of such person or any amount which ought to have been, but is not, brought in to account by such person, and shall in every such case, certify the amount due from such person : Provided that any person aggrieved by an order of payment of certified sums may appeal to the State Government whose decision on such appeal shall be final.
9. (9) Any person who willfully neglects, or refuses to comply with requisition made by the Auditor or the officer subordinate to him or refuses to comply with any order or direction given by the Board under sub-section (8), shall be liable for any legal action against him as may be considered necessary and appropriate by the Board of the Municipality.