Audit reports on PSU are

 Options:

a) submitted to the President/Governor for being laid before the parliament b) sent to concerned ministries/departments c) Submitted to BOD of concerned PSU d) Any of the above

The Correct Answer Is:

b) sent to concerned ministries/departments

When it comes to Public Sector Undertakings (PSUs), it’s essential to understand the auditing process and where the reports are directed. PSUs are government-owned corporations or agencies created by the Government of India to undertake commercial activities on behalf of the government. These entities play a crucial role in the economic development of the country.

The auditing of PSUs is a vital process to ensure transparency, accountability, and effective utilization of public funds. The Comptroller and Auditor General of India (CAG) is responsible for auditing the accounts of PSUs. The audit reports on PSUs are submitted to the President/Governor for being laid before the parliament, but this is not the final step in the process.

Correct answer is option (b): sent to concerned ministries/departments. Here’s why:

• Accountability to Concerned Ministries/Departments: After the audit is conducted, the reports are sent to the concerned ministries or departments that oversee the functioning of the respective PSU. This step is crucial because it directly involves the authorities responsible for the PSU’s operations and performance.
• Corrective Actions and Implementations: The concerned ministries/departments play a pivotal role in implementing any recommendations or corrective actions that may be suggested in the audit report. This ensures that any deficiencies or irregularities identified in the audit are addressed promptly.
• Policy Formulation and Decision-Making: The audit reports provide valuable insights into the financial health, compliance, and overall performance of the PSU. This information is essential for the concerned ministries/departments in formulating policies and making decisions regarding the PSU’s future.
• Transparency and Accountability: Sending the reports to concerned ministries/departments fosters transparency and accountability in the functioning of PSUs. It establishes a clear line of communication between the auditors, the PSU, and the governing authorities.

Now, let’s discuss why the other options are not correct:

a) Submitted to the President/Governor for Being Laid Before the Parliament

This option suggests that audit reports on Public Sector Undertakings (PSUs) are directly submitted to the highest levels of government, the President or Governor, for presentation in parliament. While this does eventually occur, it is not the immediate next step after the audit. Instead, the audit reports follow a sequential process, first being sent to the concerned ministries or departments responsible for overseeing the PSU’s operations.

These ministries/departments play a pivotal role in the functioning and oversight of the PSU. They are responsible for reviewing the audit reports and taking any necessary actions based on the findings, which may include addressing deficiencies or irregularities.

Subsequently, any summary or response prepared by these concerned authorities may be presented in parliament by the President/Governor. This process ensures transparency, accountability, and effective follow-up on audit findings.

c) Submitted to BOD of Concerned PSU

Option (c) suggests that the audit reports are directly submitted to the Board of Directors (BOD) of the concerned PSU. While the BOD certainly has a role in responding to audit findings, they are not the primary recipients of the initial audit reports. The BOD of a PSU typically oversees strategic decision-making and governance.

They may be involved in implementing recommendations from audit reports, but they do not receive the reports directly. Instead, the reports are initially directed to the concerned ministries or departments responsible for overseeing the PSU’s operations. These authorities have a more immediate and direct role in the PSU’s operations and performance.

d): Any of the Above

Option (d) implies that any of the options (a, b, and c) could be correct. However, this is not accurate in the context of the auditing process for PSUs. There is a specific and sequential process for auditing PSUs, with option (b) being the correct one, where the reports are sent to concerned ministries/departments.

This structured process ensures clarity, transparency, accountability, and effective follow-up on audit findings. It establishes a clear line of communication between the auditors, the PSU, and the governing authorities, allowing for informed decisions and necessary actions for the betterment of the PSU and its operations.

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