DBH & Associates are the statutory auditors of MBPC Limited, a public sector undertaking in the power sector. It is engaged in constructing…

CA Final · Advanced Auditing, Assurance and Professional Ethics · MTP · May 2025
DBH & Associates are the statutory auditors of MBPC Limited, a public sector undertaking in the power sector. It is engaged in constructing large sized thermal power stations to accelerate development of the power sector in the country. One of the financial committees of Parliament has decided to examine its physical and financial performance. It has also examined the audit findings of C&AG in respect of which action is yet to be taken by the said PSU. The committee also proposes to include in its report the performance of the company in various operational matters. Which financial committee of Parliament deals with such matters? Outline its main functions.

Suggested Answer and Working Notes:

The said matters are dealt with by Committee on Public Undertakings (COPU). The functions of the Committee are - (i) to examine the reports and accounts of public undertakings. (ii) to examine the reports of the C&AG on public undertakings. (iii) to examine the autonomy and efficiency of public undertakings and to see whether they are being managed in accordance with sound business principles and prudent commercial practices. (iv) to exercise such other functions vested in the PAC and the Estimates Committee as are not covered above and as may be allotted by the Speaker from time to time. The examination of public enterprises by the Committee takes the form of comprehensive appraisal or evaluation of performance of the undertaking. It involves a thorough examination, including evaluation of the policies, programmes and financial working of the undertaking.

Topics: Overview of Audit of Public Sector Undertakings, Internal Audit

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