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 bilpng, 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 apppcable provisions of the Act.