Power of Auditor.

(1) The municipal accounts as contained in the financial statement, including the accounts of special funds, if any, and the balance sheet shall be examined and audited by the Director, by whatever name called, or any other person of equivalent rank, as may be appointed by the State Government or an Auditor appointed by the Municipality from the panel of professional Chartered Accountants prepared in that behalf by that Government. (2) (a) The Comptroller and Auditor-General of India shall provide technical guidance to, and supervision over, the proper maintenance of accounts of the Municipalities and audit thereof. Explanation. - The technical guidance to, and supervision over, the proper maintenance of accounts of the Municipalities by the Comptroller and Auditor-General of India shall include providing guidance regarding maintenance of accounts, standard of audit, guidelines of certification, training for capacity building, comments on accounts, and test audit of Municipalities selected as a representative sample. (b) The Comptroller and Auditor-General of India shall prepare an Annual Technical Inspection Report based on technical guidance to, and supervision and test check of accounts of, Municipalities, to be placed before the Executive Authority. (c) The Comptroller and Auditor-General of India may, at his discretion, exercise the right to report to the State Legislature the results of such test check of accounts. (3) The Chief Municipal Officer shall submit such further accounts to the Auditor and the Comptroller and Auditor-General of India, as may be required. (4) The Auditor appointed under sub-section (1) may- (a) 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, (b) 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, (c) 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 to prepare, and to submit, any statement, and (d) cause physical verification of any stock of articles in course of examination of accounts. (5) The Auditor, or the officer subordinate to him, may report to the Executive Authority any item of accounts contrary to the provisions of this Act. (6) The Executive Authority shall consider the report of the Auditor along with the report of the results of the test check of accounts of the Comptroller and Auditor-General of India, 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 authorizing such payment, and shall charge against any person the amount of any deficiency or loss incurred by the negligence or misconduct of such person or any amount which ought to have been, but is not, brought into account by such person, and shall, in every such case, certify the amount due from such person. (7) Any person who willfully neglects, or refuses to comply with, the requisition made by an Auditor, or an officer subordinate to him, shall, on conviction by a court of competent jurisdiction, be punishable with such fine as may be prescribed.