Section 10 of the Press Council Nepal Act 1992, makes a provision for an Audit Committee of Circulation. Government of Nepal, in consultation with the Council, constitutes an Audit Committee of Circulation. The Committee consists of the following members:

a) Press Registar : Chairman

b) Representative, Ministry of Information and Communications: Member

c) Representative, Press Council: Member

d) Three persons nominated by Nepal Government at the rate of one person each from the Auditor's Association, the Advertising Association or Agency and Association of Business or Industrial Association Member

e) An official designated by the Press Council :Secretary

The main functions of the Committee are:

a) To determine the number of publication on the basis of circulation of newspapers and keep an up-to-date record, and

b) To classify papers on the basis of the number of their publications.

Following the regulations the Committee has been classifying the papers every year. It has developed standard procedure and guidelines of evaluation on the basis of which they are classified. After making the final classification, the report is submitted to the Ministry of Information and Communications for its approval.