Sikkim was merged with the Indian Union on 26th April 1975 and became 22nd State of the India. Initially Sikkim Cell was created under the charge of Joint Director, in the office of the Director of Audit, Central, Calcutta, to discharge the accounting and auditorial functions for the State of Sikkim. A full-fledged office as an independent unit started functioning in Gangtok with effect from 10th December 1981 and Shri R.P. Pal was first Accountant General. Consequent on restructuring of cadres in the Indian Audit and Accounts Department on 1st March 1984, the office was bifurcated into two offices, viz. Accounts & Entitlement Office (A&E) and Audit Office. The Audit Office is headed by Pr. Accountant General/ Accountant General and Accounts Office functions under Sr. Dy. Accountant General/ Dy. Accountant General.  Both the office function under supervision of Pr. Accountant General / Accountant General.  The office was housed in a rented building in the heart of Gangtok city till March 2006. The office was shifted to Lekha Pariksha Bhawan, Deorali, Tadong, Gangtok in April 2006.  The office building is owned by the department.

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