Auditor.
Section 10
SEC. 10. Auditor.—The Chairman of the Commission on Audit shall appoint a representative who shall be the Auditor of the Corporation and such personnel as may be necessary to assist said representative in the performance of his duties. The budget of the Office of the Auditor shall be appropriated by the Corporation, subject to the approval of the Board. Such representative shall render a semestral report on the financial condition and operations of the Corporation to the Chairman of the Commission on Audit and the Board. The Chairman of the Commission on Audit shall submit to the President of the Philippines an annual report covering the financial conditions and operations of the Corporation. These auditing reports shall contain a statement of the resources and liabilities including earnings and expenses, reserves and profits, as well as losses, bad debts and such other facts which, under the auditing rules and regulations are considered necessary to accurately describe the financial conditions and operations of the Corporation: Provided, That before such reports are made, the Corporation shall be given reasonable opportunity to examine the reports and make exception to any criticisms of the Auditor of the Corporation or the Chairman of the Commission on Audit, as the case may be, to point out, explain or answer any inaccuracies therein, if any, and to file a statement which shall be appended by the Auditor of the Corporation and the Chairman of the Commission on Audit in their respective reports. The Auditors of the business subsidiaries of the Corporation shall be appointed by their respective Boards of Directors.