State Authority Invites Expressions of Interest for Appointment of Internal Auditor

Audit and Practice insights – TaxLiner.in
Key takeaway: A state authority invites CAG-empanelled audit firms to bid for internal audit work; fees are paid only after the audit is completed.

1. Core Facts & Background

  • The department invited expressions of interest from qualified audit firms for internal audit services spanning August 2024 to March 2026.
  • Eligible firms are required to hold active empanelment with the Comptroller and Auditor General and possess a minimum five-year operational history.
  • The terms prescribe that the applicant firm must maintain its head office within the designated state.
  • Prior experience in conducting audits for autonomous bodies or educational institutions was specified as a key qualification.

2. Revenue / Department’s Action

  • The department established a two-bid tender framework comprising separate technical and financial bids.
  • The department mandated submission of audited turnover statements, tax return acknowledgments, and statutory credentials.
  • The department reserved absolute authority to vary, cancel, or reject any proposal without assigning reasons.
  • The department stipulated that audit execution must commence promptly upon issuance of the assignment order.

3. Assessee’s Defense & Arguments

  • The assessee must demonstrate relevant expertise and deploy a qualified team of professionals.
  • The assessee is required to furnish comprehensive firm profiles, partnership deeds, and tax registration documents.
  • The assessee must submit an all-inclusive fee proposal without claiming additional expenses or advance payments.
  • The assessee is obligated to deliver year-end internal audit reports in adherence to statutory directives.

4. Final Ruling & Outcome

  • The department confirmed that selection will proceed based on detailed scrutiny of technical and financial competence.
  • Audit fee disbursement will occur exclusively upon satisfactory completion of the assigned audit engagement.
  • All procedural disputes regarding the empanelment remain subject to the binding decision of the department.

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This summary is for general information only and is not legal advice. Please check the full order or notification before acting on it.

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