CA Alok is the auditor of VT Limited, an unlisted public company, which has a turnover of 100 crore during the FY 2025-26. The statutory audit fee…

(a) For the first part of Question 6(c): Appointment as a Statutory Auditor of a PSUs'/Govt Company(ies)/ Listed Company(ies) and Other Public Company(ies): As per the Council General Guidelines 2008, under Chapter IX on appointment as statutory auditor a member of the Institute in practice shall not accepts the appointment as a statutory auditor of a PSUs'/Govt company(ies)/Listed company(ies) and other public company(ies) having a turnover of 50crores or more in a year and where he accepts any other work(s) or assignment(s) or service(s) in regard to same undertaking(s) on a remuneration which in total exceeds the fee payable for carrying out the statutory audit of the same undertaking. For this purpose, the term "other work(s)” or “service(s)” or “assignment(s)” shall include Management Consultancy and all other professional services permitted by the Council pursuant to Section 2 (2) (iv) of the Chartered Accountants Act, 1949 but shall not include (a) audit under any other statute; (b) certification work required to be done by the statutory auditors; and (c) any representation before an authority; In the given case, turnover of the VT Limited, which is a public company, is having turnover 50crore or more, therefore CA Alok statutory auditor is covered under the provision of Chapter IX of the Council Guidelines 2008. Fees for tax audit work under u/s 44AB of the Income-tax Act, 1961 for 5lakh, certification work for 2lakh and representation fees before GST authority for 4lakh totaling to 11 lakh exceeds statutory audit fees 10lakh. However, all these three services are excluded from the term "other work(s)” or “service(s)” or “assignment(s)”. Therefore, there is no restriction for CA Alok to accept offer of these services, hence there is no misconduct on the part of CA Alok under the Chartered Accountants Act, 1949. For the second part of Question 6 (c) (OR part): Efficiency is the input-output ratio. In the case of public spending, efficiency is achieved when the output is maximised at the minimum of inputs, or input is minimised for any given quantity and quality of output. When the audit objective of efficiency considers outputs, focus is usually on processes by which an organisation transforms inputs into outputs. While conducting a performance audit of “Digital Connect” programme, the following key aspects should be considered by the auditor to determine whether resources are used efficiently: (i) sound procurement practices are followed; (ii) resources are properly protected and maintained; (iii) human, financial and other resources are efficiently used; (iv) optimum amount of resources (staff, equipment, and facilities) are used in producing or delivering the appropriate quantity and quality of goods or services in a timely manner; (v) public sector programmes, entities and activities are efficiently managed, regulated, organised and executed; (vi) efficient operating procedures are used; and (vii) the objectives of public sector programmes are met cost-effectively.