Functions, Duties and Powers of Comptroller and Auditor General of India

The Comptroller and Auditor General (CAG) is a constitutional functionary, independent of Parliament/legislature and executives. The CAG is responsible for

  • Audit of Ministries and departments of Government of India and the State Governments.
  • Audit of Central and State Government Public Sector Undertakings and other autonomous bodies and authorities which are financed from Government funds.
  • Audit of receipts of Union or of States.
  • Audit of accounts stores and stock.
  • audit of companies and corporations.

The Comptroller and Auditor General is also responsible of compilation of accounts of the State Government, authorisation of pensionary benefits of selected categories of employees, maintenance of provident funds accounts of State Government employees of most State Governments.

These audit and accounting functions are carried out by the Indian Audit and Accounts Department (IA & AD) which functions under the Comptroller and Auditor General of India.

Role of the C&AG in regard to audit

The Comptroller and Auditor General is the sole authority prescribed in the Constitution entrusted with the responsibility of audit of accounts of the Union and of the States. It is the duty of the Comptroller and Auditor General to audit receipts and expenditure of the Union and each State and the Union Territory Governments. The audit reports of the Comptroller and Auditor General are placed before Parliament or the legislature of the State or the Union Territory, as the case may be. The duties of the Comptroller and Auditor General also extend to audit of Government companies and corporations and bodies and authorities in accordance with the laws made by the legislature and rules made there under.

Broad objectives of audit

The broad objectives of audit are to ensure legality, regularity, economy, efficiency and effectiveness of financial management and public administration mainly through assessment as to:

  • whether the financial statements are properly prepared, are complete in all respects and are presented with adequate disclosures (financial audit);
  • whether the provisions of the Constitution, the applicable laws, rules and regulations made thereunder and various orders and instructions issued by competent authority are being complied with (compliance audit); and
  • The extent to which an activity, programme or organisation operates economically, efficiently and effectively (performance audit).
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