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Section 27
Audit
: (1) The audit of the institute will be done by a total of two auditors, one selected by the shareholders and one appointed by the Government of Nepal. The auditors chosen by the shareholders will be chosen in the annual general meeting and the remuneration of the auditors will also be determined in the same meeting. But until the arrangement of the general meeting, an auditor appointed by the government of Nepal will audit the accounts of the institute.
(2) If the auditor chosen by the shareholders becomes vacant for any reason, the government of Nepal can fill the vacancy until the next general meeting.
(3) The auditors shall have the duty to audit the annual accounts and profit and loss account of the corporation and the related compensations. The auditor will be given details of all the accounts in the institution. They may at any convenient time inspect any books and documents held by any office bearer or other employee at any place of the Institute.
(4) The auditors shall submit one copy of their report on the annual accounts and profit and loss account to the Government of Nepal and the other copy to the general meeting of the company after arrangements have been made. The following should be clearly mentioned in the report:-
(a) annual accounts and profit and loss accounts have not been properly prepared with all necessary details clearly showing the actual financial position of the company,
(b) the company has not given any explanation or information requested by the auditor and if given, the explanation or information is not satisfactory, and
(c) The submitted annual accounts and profit and loss accounts are not in order.
(5) The auditors may submit such proposals as may be deemed appropriate for the proper management of the corporation. The proposals submitted in that way will be included in the agenda of the general meeting by the committee.
(6) The Government of Nepal may direct the auditors at any time to submit a report to them on whether the steps taken by the company for the proper protection of shareholders and creditors are sufficient and whether the accounting method of the company is correct.
(7) On the basis of the report received under sub-section (4) or (6), the Government of Nepal may direct the Institute for necessary improvements or arrangements.
(2) If the auditor chosen by the shareholders becomes vacant for any reason, the government of Nepal can fill the vacancy until the next general meeting.
(3) The auditors shall have the duty to audit the annual accounts and profit and loss account of the corporation and the related compensations. The auditor will be given details of all the accounts in the institution. They may at any convenient time inspect any books and documents held by any office bearer or other employee at any place of the Institute.
(4) The auditors shall submit one copy of their report on the annual accounts and profit and loss account to the Government of Nepal and the other copy to the general meeting of the company after arrangements have been made. The following should be clearly mentioned in the report:-
(a) annual accounts and profit and loss accounts have not been properly prepared with all necessary details clearly showing the actual financial position of the company,
(b) the company has not given any explanation or information requested by the auditor and if given, the explanation or information is not satisfactory, and
(c) The submitted annual accounts and profit and loss accounts are not in order.
(5) The auditors may submit such proposals as may be deemed appropriate for the proper management of the corporation. The proposals submitted in that way will be included in the agenda of the general meeting by the committee.
(6) The Government of Nepal may direct the auditors at any time to submit a report to them on whether the steps taken by the company for the proper protection of shareholders and creditors are sufficient and whether the accounting method of the company is correct.
(7) On the basis of the report received under sub-section (4) or (6), the Government of Nepal may direct the Institute for necessary improvements or arrangements.