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.