(3) The auditor shall not remove any book, voucher or document from the office of the local authority whose accounts are being audited by him:
Provided that if, in case of fraud or for other genuine reason, he considers it necessary to kept any book, voucher or other document in his possession, he may remove it after giving a receipt thereof and shall forthwith report the matter to his Controlling authority.
7. Manner of audit.- (1) The system of concurrent audit shall be followed in the case of the local authorities/local funds where such system of audit was in vogue at the Commencement of this Act. In the case of all other local authorities/local funds the accounts shall be audited annually in arrears during local audit: -
Provided that the Government shall, in consultation with the Director, introduce the system of concurrent audit in such of those local authorities/local funds as are found necessary under the provisions of any law governing them.
(2) The audit of accounts of a local authority/local fund shall be a detailed audit unless otherwise decided by the Director: Provided that the Director shall when the circumstances so warrant dispense with detailed audit of any account or a class of transactions and apply such limited check in relation to such accounts or class of transactions as he may deem fit.
(3) The auditors shall take up the audit of any local authority/local fund for a period shorter than one accounting year or the audit of any particular transaction or a series of transactions as they may deem fit if the circumstances so warrant.
(4) The auditors shall look into any other matter relating to the accounts of a local authority/ local fund as may be required by the Government and a report thereon shall be furnished to the officer authorised to receive it.
(5) The auditors shall have authority to visit any unit/zonal/division/sub division office or any other institution under the control of a local authority, local fund and to verify the books of accounts, stock and stores and connected records
(6) The auditors shall have authority to audit the accounts of any special fund maintained by a local authority/local fund and kept separate from the general funds of the institutions.
(7) In the case of Panchayats and Municipalities whose accounts are audited annually in local audit, the auditors shall at the time of such local audit check the details of collection of revenue, remittance of collection and withdrawals from accounts upto the date of commencement of audit and shall incorporate in the audit report the defects or loss of money detected in audit.
(8) The accounts of receipts and expenditure of Orphanages and poor homes are audited with a view to ascertain the extent of eligibility of the institutions for receiving grant from Government in each year and hence the audit of accounts of such institutions is confined to that extent.
(9) The accounts of Hindu Religious and Charitable Endowment Institutions in Malabar and Kasargode area whose annual income is not less than Ten thousand rupees shall be audited by the Director.
8. Manner of making requisition under section 11.- (1) The requisition referred to in clause (a) of sub-section (1) of section 11 of the Act, shall be made by the auditor in Form No. || and shall be sent to the Executive authority of the local authority/local fund in duplicate. An acknowledgement from the officer concerned with date of receipt, shall be obtained in the duplicate copy.
(2) A notice referred to in clause (b) of sub-section (1) of section 11 for personal appearance addressed to an employee of a local authority/local fund shall be made by the auditor in Form No. Ill, and shall be sent through the Executive authority, if the addressee is not the Executive authority
(3) The invitation issued in pursuance of clause (c) of sub-section (1) of Section 11 to any officer or member of a local authority/local fund shall be in the form of a letter addressed to such officer or member. A copy of every such letter shall be retained in the case file. The letter shall be sent either by registered post or by messenger, and in the latter case, an acknowledgement duly signed and dated shall be obtained in transit book. Every requisition or invitation under Section II shall be signed and dated by the auditor and shall specify a period not less than three days, within which, it shall be complied with.