एफएक्यूज

The reports of the CAG are submitted to the President in case of the Union and to the Governor in case of the State who in turn cause them to be tabled before the House. Once tabled in the House, the Reports stand permanently referred to the Central and State Standing Committees on Public Accounts (PAC)/Committees on Public Undertakings (COPU). These specialised committees have been constituted to facilitate timely and intensive scrutiny of the Annual Accounts and the Audit Reports thereon. The Committees select those findings and recommendations from our reports that they judge to be the most critical to the public interest and arrange for hearings on them. We provide technical assistance to the Committees in this task. At the hearings of the Committees, the executive can be called to account for their actions/inactions. Based on their Examination, the Committees prepare and submit their reports to the Legislature that summarise the Committee's hearings, the action taken by the executive and include recommendations to improve administrative practices and procedures.

Pursuant to this restructuring, from 2011-12 onwards, Audit Reports covering sector-wise State Government departments are being prepared separately by the CAG for submission to the Governor as per the provisions of the Constitution of India.

The DPs highlight important cases of malpractice, exceptional deviation from norms, etc. which are specific to a Drawing and Disbursing Officer (DDO). However, it does not draw conclusions on the functioning of a department / organisation or implementation of a scheme / programme as a whole, and hence does not serve as an effective tool to assist decision-makers (Government, Heads of organisations, etc.).

The findings relating to an audited entity is reported through Inspection Reports (IR). The field party which audits the entity prepares the draft IR in which significant cases of irregularity and non-compliance to rules, regulations, etc. and some performance related matters are brought out. Some of the observations (serious cases of irregularity and non-compliance to rules, etc.) may get included in CAG’s Audit Reports as Draft Paragraphs (DPs).

Audit Criteria indicate the standards, laws, rules and regulations, bye-laws, codes, manuals, Government Orders, instructions, Departmental instructions, benchmarks for performance etc. against which the compliance / performance of the concerned entity / applicable authority is measured. All Audits are conducted vis-à-vis Audit Criteria which is normally quoted while making observations in Audit.

The audit objectives would relate to the topic and would flow from the related scheme / organisational objectives or applicable laws / rules.

Based on the risk assessment mentioned above, topics for performance and compliance audit are decided and included in the Annual Audit Plan.

Annual Audit Plan is the plan for audit to be undertaken during the year ahead.

Audit process commences with the assessment of risk of the department/organisation/ autonomous body/scheme, etc. based on the expenditure incurred, criticality/ complexity of activities, priority accorded for the activity by the Government, level of delegated financial powers, and assessment of internal controls and concerns of stakeholders. Previous audit findings are also considered in this exercise.

The authority for audit by the CAG is derived from Articles 149 and 151 of the Constitution of India and the Comptroller and Auditor General's (Duties, Powers and Conditions of Service) Act, 1971 (DPC Act). Principles and methodologies for various audits are prescribed in the Auditing Standards and the Regulations on Audit and Accounts, 2007 issued by the CAG.

The CAG is responsible for auditing the accounts of the Government of India and the State Governments and public sector organisations, and for maintaining accounts of the State Governments.

The Comptroller and Auditor General (CAG) of India is an authority, established by the Constitution of India under Chapter V. He is the head of Indian Audit and Accounts Department.