Corporate Audit & Evaluation:

History of DGAW (Establishment)

The audit of accounts of the Water & Power Development Authority (WAPDA) was, on behalf of the Auditor-General of Pakistan, initially assigned to the Director, Audit & Accounts, Works, Lahore. Thereafter, when the activities of the Authority were expanded and the work became unmanageable in the office of the Director, Audit & Accounts, Works, Lahore, it was considered necessary to create an independent audit agency to carry out the requirements of Section 28 of the West Pakistan, WAPDA Act XXXI of 1958. Accordingly this office was established under Government of Pakistan, Ministry of Finance letter No.F-7 (4)-Admn-II/(RPW)/62, dated 12.04.1962 and started its functions as a separate entity with effect from 1st July, 1962.

Mandate of Directorate General, Audit WAPDA, Lahore

The Authority of the Auditor-General of Pakistan in respect of Audit of Revenues & Expenditure of WAPDA is exercised through the Director General, Audit (WAPDA) Lahore. Audit mandate is vested in Articles 169 to 171 of the Constitution of Islamic Republic of Pakistan and Section 8 of the Auditor General’s (Functions, Powers and Terms & Conditions of Service) Ordinance 2001.

Distribution of Work

This office has been re-organized w.e.f 26th May, 1991 dividing the office into eight zones each headed by its respective Deputy Director. Subsequently these offices were shifted to Lahore except Peshawar Zone. At present:

  • Seven Inspection Reports Section (IRs)
  • Administration (Admn-I & II)
  • PAC
  • Procedure Section
  • PAS
  • CAC
  • Computer/IT Section.
  • Nineteen Inspection Parties and Thirteen Branch Audit Officers are working.

The Sections, Branches and Inspection Parties are supervised by Deputy Directors, as shown in following distribution statement.

Auditee Organization WAPDA

Water and Power Development Authority (WAPDA) was created under the WAPDA Act, 1958 to provide for the unified and coordinated development of the
Water & Power resources of Pakistan. 

The Authority consists of the following:

  • Chairman
  • Member Finance
  • Member Water
  • Member Power

Member (Finance)
Member (Finance) is responsible for functioning of the department of Finance, Internal Audit, Budget & Accounts headed by Chief Auditor (Internal Audit) and Director General Finance (B&C). He also exercises administrative control over General Manager (Central Contract Cell), Director General (Taxes), Secretary (WAPDA) and Director (Public Relations).

Member (Water)
Member (Water) controls the water sector in the entire country divided into North, Central and South Zones. These cover, in general Khyber Pakhtunkhwa, Punjab, Sindh and Balochistan federating units respectively. The activity of Water Wing involves execution of surface and sub-surface water development and drainage-salinity control and reclamation projects (SCARPs). Chief Engineers and Project Directors implement the projects.

Member (Power)
Member Power controls the Power Wing through Twelve Nos. General Managers, Director Generals, Chief Engineers in the field of planning, finance, Grid System Operation (GSO), Grid System Construction (GSC), thermal operation, hydro-electric power, co-ordination of WAPDA Power Privatization Organization (WPPO).
As a result of restructuring of Power Wing, nine Distribution Companies (DISCOs), four Generation Companies (GENCOs) and one National Transmission & Despatch Company (NTDC) as detailed below were established in 1998. Every Corporatized entity is headed by a Chief Executive who has under him a host of technical and non-technical, skilled and non-skilled work force. PEPCO supervises the functioning of corporate entities. Member Power holds the charge of Chief Executive Officer (PEPCO).

Generation Companies


Jamshoro Power Generation Company (GENCO-I)


Central Power Generation Company (GENCO-II)


Northern Power Generation Company (GENCO-III)


Lakhra Power Generation Company (GENCO-IV)

National Transmission and Despatch Company (NTDC)


National Transmission and Despatch Company (NTDC)

Distribution Companies


Faisalabad Electric Supply Company (FESCO)


Gujranwala Electric Power Company (GEPCO)


Hyderabad Electric Supply Company (HESCO)


Islamabad Electric Supply Company (IESCO)


Lahore Electric Supply Company (LESCO)


Multan Electric Power Company (MEPCO)


Peshawar Electric Supply Company (PESCO)


Quetta Electric Supply Company (QESCO)


Tribal Areas Electric Supply Company (TESCO)
(Established in  July, 2003)

The remaining portion of Power Wing is called “Residual Power Wing”, which is headed by Member (Power).

Department Detail (Includes Sections, Branches & Zones)

The office of Director General is located at Lahore with one Zonal Office at Peshawar and thirteen (13) Branch Audit Offices.
The Branch Audit Offices conduct concurrent audit of mega projects whereas the remaining formations are test audited by Inspection Parties on annual basis as per Audit Plan.

Head Office
Head Office consists of the following Sections:-

  1. Admn-I Section
  2. Admn-II Section
  3. Computer Section
  4. Procedure Section
  5. Audit Report Section
  6. Public Accounts Committee Section (PAC)
  7. Performance Audit Section (PAS)
  8. MFDAC  Section
  9. Inspection Report Section-I (MEPCO, HESCO, QESCO)
  10. Inspection Report Section-II(FESCO and LESCO)
  11. Inspection Report Section-III (GEPCO and IESCO)
  12. Inspection Report Section-IV(QESCO & HESCO)
  13. Inspection Report Section-V(NTDC)
  14. Inspection Report Section-VI(GENCOs)
  15. Inspection Report Section-VII (Authority Offices)
  16. Central Audit Cell (CAC) (It deals with the Financial Analysis, Comments on Financial Statements and the work pertain to the offices under Member Finance and Other common office like Hospitals, Press, Transport etc).

Branch Audit Offices
There are Thirteen Branch Audit Offices each head by Branch Audit Officers.
The Deputy Directors are supervising the activities of the Branch Audit Offices under the control, from their Head Quarters through the reports received there from.
They visit Branches when necessitated and hold the discussion with WAPDA authorities of the appropriate rank with the prior permission of the Director General, Audit WAPDA.


Name of Branch Audit Offices


Branch Audit Office Sunny View, Lahore.


Branch Audit Office Neelum Jehlum Hydro Electric Project, Lahore.


Branch Audit Office EHV-I Lahore.


Branch Audit Office WPPO Lahore.


Branch Audit Office Building Circle/MPP Lahore.


Branch Audit Office EHV Islamabad.


Branch Audit Office CRBC/Gomal Zam Dam D.I.Khan.


Branch Audit Office Greater Thal Canal Project Mianwali.


Branch Audit Office Kachhi Canal Project D.G. Khan.


Branch Audit Office Rainee Canal Project, Guddu.


Branch Audit Office RBOD Stage I & III Sukkur.


Branch Audit Office Tarbela.


Branch Audit Office Mangla Raising Project.

Inspection Parties
There are Nineteen Inspection Parties each head by Inspecting Officers.
The Deputy Directors are supervising the activities of the Inspection Parties under the control, from their Head Quarters through the reports received there from.
They visit Inspection Parties when necessitated and hold the discussion with WAPDA authorities of the appropriate rank with the prior permission of the Director General, Audit WAPDA.

IP No.

Name of Company/ Office






























Authority Offices









Important Targets

Main targets/deadlines for the Audit of WAPDA/PEPCO formation to be conducted under “Financial Audit Manual” during the Audit Year 2010-11 are as under.


Submission of Anuual Audit Plan 2010-11

upto April 15, 2010


Preparation of Audit Planning Files and Updation of Permanent Files   

Upto June, 30, 2010


Audit parties to start Field Audit

July 1, 2010


Date of completion of Field Audit

November 15, 2010


Holding of local DACs meeting

December 15, 2010


Finalization of Audit Report

December 31, 2010

Annual Audit Plan (Link)

It is the Auditor General of Pakistan’s constitutional duty to carryout the audit of WAPDA on annual basis. Directorate General Audit, WAPDA has the primary responsibility to conduct test audit of expenditure and receipts of corporate entities and Authority offices of WAPDA on annual basis through inspection parties, and concurrent post audit of expenditure at some development projects of WAPDA through Branch Audit Offices.
Auditor General of Pakistan has commissioned Financial Audit Manual (FAM) in June, 2006 which is a system oriented risk based approach. FAM is being implemented in this office from the audit year 2008-09. The focus will be addressing high risk areas including fraud and corruption and adding value to the auditee organizations by suggesting improvements.
DG Audit – WAPDA is responsible for audit of 14 corporate entitles of WAPDA, a management company PEPCO, Authority’s offices and development projects of WAPDA. In addition certification audit of foreign aided projects and performance audits are conducted. The audit is conducted in compliance with OAGP’s auditing standards, which are in conformity with INTOSAI Auditing Standards and International Standards on Auditing. The scope of audit includes verification and analysis of revenue and expenditure on test check basis. Compliance tests and substantive tests will be performed to achieve the desired results.

As per FAM the focus is on risk based auditing with concentration upon high risk areas and organizational systems and creating value for the auditee by identifying areas for improvement and making objective recommendations. The audit approach has been based on the following;

  • Strategic/ external analysis
  • Process analysis
  • Risk assessment
  • Performance measurement
  • Suggesting improvement
  • Making use of information technology
  • Maintaining quality

Audit cycle consists of three phases i.e. planning, execution and reporting. The planning phase includes the identification of audit risks after understanding the entity thoroughly, review of documents, as well as the policies, procedures and controls used to administer the activities. Relevant external factors including political, environmental, social and technical are also considered. The execution phase consists of compliance testing, and substantive testing. The compliance testing checks actual compliance with the policies, procedures and controls mainly through the use of procedural inquiry and samples of transactions. During substantive testing phase, transactions are subjected to detailed audit to verify the financial statements assertions. Testing may include validating reported balances, testing large and unusual balances or other detailed testing of balances when the results of the compliance testing phase indicate that a key control cannot be relied upon. The Reporting phase occurs when the results of the audit are prepared and communicated to the stakeholders. The Audit Report will include material internal control weaknesses and instances of non-compliance with applicable laws and regulations. Our focus will be to make a valuable contribution to improve WAPDA’s operations. Significant, relevant and material issues will be printed in Audit Report.



Imran Iqbal
Director General Audit WAPDA
Tel: 92 42 99202730
Fax: 92 42 99213464

© 2008 by Auditor General of Pakistan (All rights reserved)