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Consider the following statements regarding the CAG’s audit powers:

Statement I: The CAG can call for any records or documents from audited entities.

Statement II: The CAG has no authority to question persons in charge of audited offices.

Statement III: The CAG audits all stores and stock in government offices.

Which of the following is correct?

AOnly I and III are correct.

BOnly II and III are correct.

CI, II, and III are correct.

DOnly I and II are correct.

Answer:

A. Only I and III are correct.

Read Explanation:

Comptroller and Auditor General (CAG) of India

Audit Powers and Functions:

  • Statement I: The CAG can call for any records or documents from audited entities.
    This statement is correct. The CAG has the authority to access any relevant records, books, accounts, or documents from any person or authority who is responsible for the custody of such materials, as per the CAG's (DPC) Act, 1971.
  • Statement II: The CAG has no authority to question persons in charge of audited offices.
    This statement is incorrect. The CAG has the power to conduct a 'test audit' and can also conduct 'propriety audits'. During audits, the CAG or their representatives have the authority to examine and question individuals responsible for the management and accounts of the audited offices to clarify financial transactions and procedures. This power is crucial for a thorough audit.
  • Statement III: The CAG audits all stores and stock in government offices.
    This statement is correct. The CAG is mandated to audit all stores and stock belonging to the Union or State governments, including those held by government companies, corporations, and other bodies or authorities substantially financed by the government. This ensures accountability in the management of public assets.

Constitutional and Legal Basis:

  • The office of the CAG is established by Article 148 of the Constitution of India.
  • The CAG is an independent constitutional authority responsible for auditing all receipts and expenditures of the Government of India and the governments of the states and union territories.
  • Key legislation governing the CAG's powers and duties includes the CAG's (DPC) Act, 1971.

Exam-Oriented Facts:

  • The CAG submits audit reports to the President (for Union government accounts) or the Governor (for State government accounts).
  • These reports are then laid before both Houses of Parliament or the State Legislature, respectively.
  • The Public Accounts Committee (PAC) and the Committee on Public Undertakings (COPU) of Parliament scrutinize these reports.
  • The CAG is often referred to as the 'watchdog of the public purse'.

Related Questions:

Which of the following statements is/are correct regarding the CAG’s audit reports?

(i) The CAG submits three audit reports to the President: on appropriation accounts, finance accounts, and public undertakings.

(ii) The CAG’s audit reports on state accounts are submitted directly to the state legislature by the CAG.

The recommendations submitted by the State Finance Commission to the Governor include principles governing:

  1. The sharing of net income of state-levied taxes between the Government and Panchayats.

  2. The appointment of executive officers for the Panchayats.

  3. The taxes, duties, cesses, and fees which may be marked for and expended by the Panchayats.

Which of the statements given above is/are correct?

Consider the following statements on the President's role in constitutional amendments:

  1. The President can withhold assent to an amendment bill.

  2. The 24th Amendment Act of 1971 mandates the President's assent.

  3. The bill can be returned for reconsideration by Parliament.

Which of the statements given above is/are incorrect?

Consider the constitutional and conventional aspects of the Attorney General's office.

  1. The principle that the Attorney General holds office during the 'pleasure of the President' is a constitutional provision found in Article 76.

  2. The practice of the Attorney General resigning when the government changes is a well-established constitutional law.

  3. The Attorney General's right to participate in parliamentary committees without voting rights is derived from Article 88 of the Constitution.

Which of the statement(s) given above is/are correct?

Choose the correct statement(s) regarding the composition and functioning of the Union Public Service Commission (UPSC).

  1. At least half of the UPSC members must have held office under the Government of India or a state government for at least ten years.

  2. The UPSC is consulted on disciplinary matters and claims for reimbursement of legal expenses incurred by civil servants in official duties.

  3. The UPSC’s recommendations are advisory, and the government is not obligated to accept them.