9th November, 2001 .
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
subject: Central Excise – Covering all audits by Central Excise Officers under EA-2000 using new Audit Manual, Standard Audit Programme and Working Papers – Instructions regarding
I am directed to say that the Board has decided that all audits by Central Excise Officers shall be conducted under EA-2000 using new Audit Manual, Standard Audit Programme [As contained in Audit Manual as on 1st September, 2001) and Working Papers. The traditional audit using old Audit Manual [1998 Edition] will be phased out. Thus there will be only one type of audit with effect from 1st January, 2002. 2.
2.For the purpose of auditing units/assessees paying duty below Rs. 1 crore from PLA from account current in a financial year, the new Audit Manual and the Standard Audit Programme are suitable. However, the Working Paper has been modified by Directorate General (Audit) to suit auditing of smaller units, especially considering less complex accounting in such units and need for optimizing on time and man-power commensurate will requirements of checks. The Board has directed the Directorate General (Audit) to urgently circulate the simplified Working Paper.
3. Since the Board has decided that there will be only one type of audit w.e.f. 1st January, 2002 (i.e audit of the units paying duty Rs.1 crore will also be -2- conducted on the basis of the new Audit Manual, Standard Audit Programme and simplified Working Papers), the Commissioners and National Academy of Customs Excise Narcotics (including the R.T.Is) will impart training to the officers posted in Internal Audit of Commissionerates by 15th December, 2001. However, this training will be an on-going process and would cover other officers also in due course so that the transfer of officers does not hamper the audit work.
4. The field formations may suitably be informed.
5. Receipt of this Circular may please be acknowledged.
6. Hindi version will follow.