Question

Consider the following statements about the Audit Board and historical context:

(i) The Audit Board was established in 1968 and consists of three members appointed by the CAG.

(ii) V. Narahari Rao was the first CAG of independent India, serving from 1948 to 1954.

(iii) The CAG’s (Duties, Powers and Conditions of Service) Act was enacted in 1976.

Which of the statement(s) is/are NOT TRUE?

• A. Only (i)
• B. Only (ii)
• C. Only (iii)
• D. None of these

Answer 1

Answer:

C. Only (iii)

Audit Board and CAG

• Audit Board: The Audit Board was constituted in 1976, not 1968. It comprises three members, and they are appointed by the President of India, not the CAG. This board is responsible for auditing certain government entities.

• First CAG of Independent India: Shri V. Narahari Rao was indeed the first Comptroller and Auditor General (CAG) of independent India. He served from 1948 to 1954. The CAG is a constitutional office established under Article 148 of the Indian Constitution.

• CAG's (Duties, Powers and Conditions of Service) Act: This significant Act was enacted in 1971, not 1976. This act defines the responsibilities and operational framework for the CAG.

• Constitutional Role of CAG: The CAG is an independent constitutional authority tasked with auditing all receipts and expenditures of the Union and State governments. The CAG audits government companies, corporations, and bodies receiving substantial government grants.

• Key Constitutional Articles related to CAG: Article 148 deals with the appointment and independence of the CAG. Articles 149, 150, and 151 outline the duties, powers, and reporting functions of the CAG.

• Significance for Competitive Exams: Understanding the correct dates of establishment for institutions like the Audit Board and the enactment of key legislation like the CAG's Act is crucial for exams. Also, knowing the first holder of a significant constitutional post like the CAG is frequently tested.