The Employees’ Provident Fund Organisation (EPFO) on April 2nd 2025 has issued a detailed circular to streamline and standardize its audit planning and engagement process, as per Paragraphs 3.4.1 and 3.4.2 of the Audit Manual. The move is aimed at enhancing audit quality, consistency, and resource efficiency across all levels.
Key Components of the Circular:
Audit Guidelines
Developed by the Head Office (HO), the guidelines outline principles, procedures, and best practices aligned with inputs from CAG and the Ministry of Labour.
Annual Audit Plan
Prepared annually in December, this plan identifies priority audit areas and must be developed in consultation with Zonal and Divisional Heads.
Audit Calendar
Finalized in January, this provides a detailed timeline for all audit engagements. Zonal Offices must coordinate in overlapping jurisdictions and send finalized calendars to the HO.
Working File
IAPs must open a digital file in e-office to document all activities—from schedule planning to final audit report (FAR). This ensures traceability and proper documentation.
Audit Planning Memo
This memo defines the scope, focus areas, objectives, and methodology of the audit, and must be shared at least one month prior to the audit. Tailored per office, it takes into account prior reports, risk assessments, and administrative inputs. A sample Audit memo is enclosed in Annexure I
List of Required Documents
Based on the Planning Memo, a finalized list of necessary documents must be prepared 15 days before the audit, ensuring proper audit readiness.
Audit Intimation
Official intimation to both IAPs and auditee offices must also be sent 15 days before the audit, including details like audit scope, objectives, duration, personnel, and document requirements. A sample Audit intimation is enclosed in Annexure II
The circular emphasizes that any deviation from these steps may compromise audit effectiveness and waste resources. Adherence is mandatory and forms the basis for accountable and impactful internal audits.
Issued with the approval of the ACC[HQ], Audit, this circular sets a new standard for structured and transparent audit execution within EPFO’s internal framework.
