Following are the special features if the audit of public sector undertakings:
Public sector undertakings have certain special features of audit as working and organization of such enterprises have distinctive feature. Generally, most of the public sector undertakings are run as Government companies registered under the Companies Acts or as statutory corporation set up under special act of the legislature.
As per Section 10 of Audit Act 2075, Audit of corporate body fully owned Government of Nepal, State Government or Local Government
a) The audit of the corporate bodies wholly owned Government of Nepal State Government or Local Government shall be audited the Auditor General and Auditor General may appoint license holder auditors under the prevailing laws an assistant. While appointing auditor as such, he/she shall give priority to the Nepali citizen.
b) The auditor appointed pursuant to above shall act under the direction, supervision and control of the Auditor General.
c) The powers, functions, duties and responsibilities of the auditors appointed Auditor General and the procedures to be followed them in course audit and provisions relating to their report shall be as prescribed the Auditor General.
d) The remuneration to be paid the concerned organization to the auditors appointed shall be fixed the Auditor General keeping in view the volume of financial transactions, status of accounts, number of branches and sub-branches, work load and work progress of the concerned organization.