(1) The auditor will be appointed by the annual general meeting and his remuneration will be as determined by the same meeting. Such an auditor must have received a license to audit accounts according to Nepalese law. But the audit until the first annual general meeting will be done by the auditor appointed by the government of Nepal.
(2) The auditor can examine any accounts and documents of the institute and it will be the duty of all the employees of the institute to assist in that work.
(3) The auditor shall submit one copy of the audit report conducted by him to the Government of Nepal and another copy to the Annual General Meeting of the Corporation and the following should be clearly mentioned in such report:-
(a) Annual accounts and profit and loss accounts have not been prepared properly and properly, with all necessary details clearly disclosed to show the real financial status of the institute,
(b) The institute has not provided any explanation or information as requested and if provided, it is not satisfactory.
(4) On the basis of the report received according to sub-section (3), the Government of Nepal may give instructions to the Institute for necessary reforms or arrangements after taking the opinion of the Annual General Meeting.