18. Audit. -
(1) The period of audit to be conducted under sub-section (1) of section 12 of the Act shall be a financial year or part thereof or multiples thereof.

(2) Where it is decided to undertake the audit of a registered person, the proper officer shall inform such person by way of a notice not less than fifteen days prior to the conduct of the audit.

(3) The proper officer authorised to conduct audit of the records specified under sub-rule (1) of rule 19 and the books of account of the registered person shall, with the assistance of the team of officers and officials accompanying him, verify the documents on the basis of which the books of account are maintained and the returns and declarations furnished under the provisions of the Act and the rules made thereunder, and other relevant issues and record the observations in his audit notes.

(4) The proper officer may inform the registered person of the discrepancies noticed, if any, as observed in the audit and such person may file his reply and the proper officer shall finalise the findings of the audit after due consideration of the reply filed.