Q.Fill in the blank and justify: The statement submitted by a society to the Registrar showing the corrective action taken on the defects pointed out in its audit report is called the __________.

An audit report is useful only when the society acts on the faults it finds and then reports back what it has done.

The correct term for the blank is rectification report.

When the auditor's report lists the defects, errors and irregularities found in the society's working, the law requires the society to rectify them — the managing committee must correct wrong entries, recover losses, make good shortages and tighten its procedures. Having done so, the society must submit a rectification report to the Registrar within the prescribed period, stating what action it has taken on each defect. …

Students sometimes write 'audit report' or 'audit memo'. Those are prepared by the auditor and list the defects; the rectification report is prep …