Core Areas for Internal Audit of Regional Offices
EPFO circular Audit/13(1)2021/COREAREAS-Part(1)/25 · 14 Jul 2026
Official title
Core Areas for the Internal Audit of the Regional Offices - Regarding No. Audit/13(1)2021/COREAREAS-Part(1)/25 dated 14/07/2026
Official record
Open source pageSummary
Check the official recordWhat changed
The Employees' Provident Fund Organisation has issued updated core areas for the internal audit of Regional Offices for the financial year 2026-27. Internal Audit Parties (IAPs) are required to prioritize these areas, which include verification of payments, inoperative accounts, claim settlements, KYC profile corrections, pension disbursements, and compliance with various schemes. The audit must also cover administrative matters, procurement, and the implementation of e-Office. Additionally, IAPs are mandated to include recurring audit observations—such as bank and suspense account reconciliations, fixed asset management, and security deposit records—in their annual audit plans. IAPs must examine all relevant files, reports, and portals to ensure strict compliance.
What you must do
- IAPs must prioritize the specified core areas while ensuring all other functional areas are comprehensively audited.
- IAPs must mandatorily examine files, reports, returns, documents, and portals related to the audit.
Document text
(For Web-Circulation/e-Office Internal Circulation)
कर्मचारी भविष्य निधि संगठन Employees Provident Fund Organisation (श्रम एवं रोजगार मंत्रालय, भारत सरकार) (MINISTRY OF LABOUR & EMPLOYMENT, GOVERNMENT OF INDIA) मुख्या कार्यालय/Head Office प्लेट ए, ग्राउंड फ्लोर, ब्लॉक-II, ईस्ट किदवई नगर, नई दिल्ली-110023 Plate A, Ground Floor, Block II, East Kidwai Nagar, New Delhi-110023 Website: www.epfindia.gov.in, www.epfindia.nic.in
No. Audit/13(1)2021/COREAREAS-Part(1)/25 Date: 14.07.2026
Circular
Subject: Core Areas for the Internal Audit of the Regional Offices - Reg.
With reference to the above subject, please find the updated Core Areas for Internal Audit of the Regional Offices w.r.t the year 2026-27, as under:
| Sl. No. | Core Areas |
|---|---|
| 1. | Sample verification of multiple payments in single bank account, amounts credited in Dummy Account during the year, transfer out cases and change through Appendix-E entries and Special VDR functionality during the last 5 years. |
| 2. | Inoperative accounts of the office and the withdrawal thereof |
| 3. | Un-reconciled credits of subscribers due to non allotment of UAN/or any other reason /un-reconciled Challan |
| 4. | Adverse balances in accounts of the subscribers of EPFO and Unclaimed deposits/balances |
| 5. | Whether ECR is being submitted on time with complete details |
| 6. | COVID-19 advance scheme thereof Audit of the COVID-19 claims settlement and claims settled through auto mode |
| 7. | The audit of the average time taken for passing of various types of claims by each office and the percentage of rejected Claims. Reasons for rejection of claims and remedial action thereof and whether the claimant was advised correctly of the reason why his claim had been rejected. |
| 8. | Verification of Member Profile Correction in Name/DOB/Father/Spouse/Gender and also changes made in the KYC details such as Aadhar, Name and Bank Account by either authorized signatories of the establishments, other employees of the establishment or some other person outside of the establishment and verification of genuineness of establishments |
| 9. | Sample verification of Offline Claim and also to verify the claims settled in Offline mode wherein amount was credited using Appendix-E and Special VDR without allotment of UAN and non-Aadhar seeded UAN, during the last 5 years. Verification of transfer-in account not credited to member account and amount received back and not reauthorized to beneficiaries account and Verification of settlement of physical claims(death cases) with Aadhar related issues |
Page 1 of 4
| Sl. No. | Core Areas |
|---|---|
| 10. | Claims settled but delay in credit in Bank account. How many days delay & reason why. And Amount of unclaimed balance if any and period for which not claimed |
| 11. | Verification of High Value Claims (5 lacs or more) |
| 12. | Collection of Interest on belated credit from SBI and payment of commission/service charges to the bank. |
| 13. | Sample verification of TDS deduction on PF claims and deposited with IT department and verification of remittances received by way of Demand Draft, whether it is properly accounted, without any delay |
| 14. | Sample verification of special 10D & Special 10C cases, higher pension case and record relating to PPO wise pension reconciliation |
| 15. | Audit of Dual/Multiple Pension cases linked with same Aadhar, child pension and all instances of pension cases where on the date of approving PPO/release of pension - establishment was in default. |
| 16. | Sample verification of coverage U/s 1(4) during the year which have more than 20 no. of employees in the initial month |
| 17. | Short payment of administrative charges by employer during the year and inspection charges payable by Exempted Establishments. |
| 18. | Test check of coverage confirmation of OLRE coverage |
| 19. | Pendency of prosecution cases under Section 14 of the Act, all pending 7A cases beyond 2 years and all pending arrear demand of Rs. five lakhs and above. |
| 20. | Status of levy & collection of damages |
| 21. | The issue of establishment (-) Negative balance |
| 22. | Sample verification of EDLI exemption case |
| 23. | Verification of expenditure/re-imbursement to the employer under PMRPY Scheme up to 2019, the audit of this scheme implemented in Field Offices and verification of ABRY eligibility by establishments and employees from October-20 to 31st March 22). |
| 24. | Procurement and expenditure to be audited in the context of GFR provisions, Budget allocation and Schedule of Administrative & Financial powers. |
| 25. | Physical Cleanliness of the office in terms of directives given under the Swatch Bharat Abhiyan. |
| 26. | Service matters of the officers/officials |
| 27. | The working of facilitation centers in RO's. |
| 28. | The time taken for and quality of resolution of grievances lodged, to be audited as per Audit Circular dated 03.01.2025. |
| 29. | Audit of Budget of each of the R.O. |
| 30. | Verification of correct disbursement of EDLI payments as per eligibility. |
| 31. | Audit of inspections allotted/done through Shram Suvidha Portal (SSP)/CAIU*. |
Page 2 of 4
| Sl. No. | Core Areas |
|---|---|
| 32. | To verify all new member IDs (Zero Balance Account) created in application software & FO interface and adjusting opening balance by using Appendix-E functionality during the last 5 years. |
| 33. | Cases related to Pension such as disbursement of pension in r/o on non-pensioners, disbursement of excess pension to ineligible member, remittance of pension in Bank Account of some other person and Pension arrears. |
| 34. | Audit of implementation and benefits disbursed through PMVBRY. |
| 35. | Verification of 100% implementation of e-Office for all employees in the office and verify that receipts, notes, approvals and disposals are processed through e-Office without use of paper-based files. |
| 36. | Test Audit of cases covered under Circular WSU/IssuesofBKG/E-49885/2024-25/16 dated 03/Apr/2025 (Circular enclosed) |
| 37. | Operational status of Para 83.7 (2) of EPF Scheme, 1952 related to International Workers |
| 38. | Applicability of WSU Circular No. WSU/Claim processing/2025/e-1173371/36 dated 19.09.2025 (Circular enclosed) |
| 39. | Applicability of WSU Circular No. Finance/Coord/Taskforce-Delegationofpowers/2024/34 dated 18.09.2025 (Circular enclosed) |
| 40. | Applicability of WSU Letter No. WSU/2023/12/InoperativeAccountsinEPF/14882 dated 08.01.2026 (Letter enclosed) |
| 41. | Applicability of WSU Circular No. WSU/Transfer of Claims/E-52972/2024-25/005 dated 15.01.2025 (Circular enclosed) |
| 42. | Applicability of WSU Circular No. WSU/JointDeclaration/E-54018/2025-26/37 dated 22.09.2025 (Circular enclosed) |
| 43. | Reconciliation of Suspense Accounts |
| 44. | Monthly Reconciliation of Bank Accounts |
| 45. | Ensuring that all land and buildings are registered in the name of EPFO |
| 46. | Conducting of periodic physical verification of stores, cash in hand, furnitures & Fixtures, office equipment, etc and obtaining bank balance confirmation certificates. |
| 47. | Maintenance of Cheque Cancellation Register |
| 48. | Maintenance of details of outstanding expenses |
| 49. | Verify whether ROs have closed the Pension Disbursement Account after due reconciliation of Pension disbursement consequent upon adoption of Centralized Pension Processing System (CPPS) |
- It is requested that the approved Core Areas may kindly be circulated to all concerned Internal Audit Parties (IAPs) and Regional Offices (ROs) under your jurisdiction for strict compliance while conducting the internal audit of Regional Offices during the Financial Year 2026-27.
- The Core Areas are intended as aids to the Internal Audit Party (IAP) and not to be construed as an end in themselves.
- IAP while conducting the audit should prioritize the Core Areas, while ensuring that all other functional areas are also comprehensively audited
Source details
- Source
- Employees' Provident Fund Organisation
- Type
- circular
- Published by source
- 14 Jul 2026
- Document number
- Audit/13(1)2021/COREAREAS-Part(1)/25
- Issuing division
- Head Office, Audit Division
- Coverage area
- labour