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The Insurance Corporations Act, 1973

( ACT NO. VI OF 1973 )

Accounts and audit
19. (1) Each Corporation shall maintain proper accounts and shall, at the expiry of each year, prepare in the prescribed form with reference to that year a balance sheet, a profit and loss account and revenue accounts in respect of such class of insurance business together with such other abstracts and statements as may be prescribed.
(2) The accounts of each Corporation shall be audited by not less than two auditors, being Chartered Accountants within the meaning of the Chartered Accountants Ordinance, 1961 (Ord. X of 1961), who shall be appointed by the Government in consultation with the Comptroller and Auditor-General on such terms and conditions as the Government may fix, and shall, in regard to the extent and method of their audit, be guided by such directions as may be given by the Comptroller and Auditor-General.
(3) Notwithstanding anything contained in sub-section (2), the provisions of sections 12A and 33 of the Insurance Act, 1938 (Act IV of 1938), shall apply to each Corporation.
(4) Every auditor appointed under sub-section (2) shall be given a copy of the annual balance sheet and other accounts of the Corporation and shall examine it together with the account books and vouchers relating thereto; and shall have a list delivered to him of all books kept by the Corporation, and shall at all reasonable times have access to the books of accounts and other documents of the Corporation, and may in relation to such accounts examine any Director or officer of the Corporation.
(5) The auditors shall report to the Government upon the annual balance sheet and accounts, and in their report they shall state whether in their opinion the balance sheet contains all necessary particulars and is properly drawn up so as to exhibit a true and correct view of the state of affairs of the Corporation and, if they have called for any explanation or information from the Board, whether it has been given and whether it is satisfactory.
(6) The Government may, at any time, issue directions to the auditors requiring them to report to it upon the adequacy of measures taken by the Corporation concerned for the protection of the interest of the Government and of the creditors of the Corporation concerned or upon the sufficiency of the procedure in auditing the affairs of the Corporation concerned, and may, at any time, enlarge or extend the copy of the audit or direct that different procedure in audit shall be adopted or that any other examination shall be made by the auditors or any other person or persons if, in its opinion, the interest of the Government or of the creditor so requires.

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