CAG Flags 38% Staffing Shortage in CBIC Audit Formations, Urges Strengthening of Internal Audit Mechanism
The Comptroller and Auditor General (CAG) on Thursday highlighted that the Central Board of Indirect Taxes and Customs (CBIC) is experiencing a substantial manpower shortfall in its audit divisions, with 38 percent of positions remaining vacant as of July 1, 2024, resulting in a disparity between scheduled and executed audits.
The CAG’s report on the Department of Revenue for the period ending March 2023 underscored the pivotal role of internal audits in ensuring taxpayer compliance under the self-assessment tax framework.
“As of July 1, 2024, 38 percent of positions within the CBIC’s audit divisions were unfilled. Consequently, there has been only a marginal increase of 4 percent in the number of units selected for internal audit in FY'23 compared to FY'22,” the CAG observed.
Audit completion rates have shown progressive improvement over the years, with audited units accounting for 26 percent in FY'21, 48 percent in FY'22, and 70 percent in FY'23 of the total units planned.
“Although there has been an upward trend in the proportion of units audited relative to those planned from FY'21 to FY'23, a gap between planned and audited units persists,” the CAG added.
The CAG’s report on the Department of Revenue for the period ending March 2023 underscored the pivotal role of internal audits in ensuring taxpayer compliance under the self-assessment tax framework.
“As of July 1, 2024, 38 percent of positions within the CBIC’s audit divisions were unfilled. Consequently, there has been only a marginal increase of 4 percent in the number of units selected for internal audit in FY'23 compared to FY'22,” the CAG observed.
Audit completion rates have shown progressive improvement over the years, with audited units accounting for 26 percent in FY'21, 48 percent in FY'22, and 70 percent in FY'23 of the total units planned.
“Although there has been an upward trend in the proportion of units audited relative to those planned from FY'21 to FY'23, a gap between planned and audited units persists,” the CAG added.
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