Page 303 - CA Final Audit Titanium Full Book. (With Cover Pages)

CA Ravi Taori

15 Overview of Audit of Public Sector
Undertakings

Case Study – CA Smita
Appointment: CA Smita joined the Indian Audit and Accounts Service after becoming a Chartered
Accountant. Initial posting was in Mumbai.
Insurance Audit:
Audited a PSU in the insurance sector.
Found policies issued to mobile handset companies.
Policies offered free insurance to customers if they bought a software application.
No actuarial valuation was done; lacked necessary approvals.
Resulted in losses due to non-compliant underwriting.
Steel Company Audit:
Conducted a performance audit of a government-owned steel company.
Identified deficiencies in project planning, tender finalization, and execution.
Noted project delays and missed market opportunities.
Promotion & New Role:
Promoted and posted in a northern state.
Tasked with compiling a report on the financial performance of state government-owned companies and
corporations.
Power Company Audit:
Supplementary audit by CAG found improper determination of depreciation.
Overstatement of profits by ₹ 20 crore in a state-owned power generating company.
CAG's Reach: Highlighted the extensive oversight of CAG in relation to PSUs.

(CNO- PSU.020) FRAMEWORK FOR GOVERNMENT AUDIT

www.auditguru.in 15.1