Audit of Electricity Supply Company

The following points need to be considered by an Auditor while conducting Audit of Electricity Supply Company −

• He should carefully study the internal control system related to billing, payment collection, collection of debts and payments of wages, electricity charges, etc.

• He should be well versed with the Provisions of Electricity (Supply) Act, 1948 and the Indian Electricity Act, 1910.

• He should verify the bills issued to consumers.

• He should verify tabular ledger of consumers with original records.

• He should verify the receipt of cash from cash receipt counterfoils, cash book, bank book.

• He should examine the total number of bills generated, payment received and pending for payments.

• He should verify whether late deposit bills are paid inclusive of late payment charges or not.

• Auditor should verify whether proper accounting is done for arrear of bills.

• Payment received on account of arrears should be properly accounted for.

• Proper accounting should be done according to the revenue and capital expenditure.

• Auditor should vouch payment for repair of sub-power stations, transformers and meters; all these repairs should be treated as revenue expenses.

• All allowances and rebates should be properly sanctioned by the appropriate authority.

• All accounting forms should be according to the requirements of the Act.

• Depreciation should be properly verified according to applicable provisions of the Act.