Question

Which of the following statements about the duties of the CAG is/are correct?
i. The CAG audits all expenditure from the Consolidated Fund of India, Consolidated Fund of each state, Contingency Fund of India and of each state, and the Public Accounts.
ii. The CAG audits the accounts of government companies as per the Companies Act.
iii. The CAG compiles and maintains the accounts of the Central Government.
iv. The CAG advises the President on the form in which the accounts of the Centre and states should be kept.

• A. i, ii, and iv
• B. i and ii only
• C. ii, iii, and iv
• D. i, iii, and iv

Answer 1

Answer:

A. i, ii, and iv

Comptroller and Auditor General of India (CAG)

• Article 148 of the Indian Constitution provides for the appointment of the CAG, who is an independent constitutional authority.

• The CAG is the head of the Indian Audit and Accounts Department and is responsible for auditing all receipts and expenditures of the Union and State Governments.

• Auditing Scope:

  • The CAG audits all expenditures incurred from the Consolidated Fund of India and each State.

  • Audits expenditures from the Contingency Fund of India and each State.

  • Audits expenditures from the Public Accounts of India and each State.

• Audit of Government Companies: The CAG audits the accounts of government companies in accordance with the provisions of the Companies Act, ensuring financial accountability.

• Advisory Role: The CAG advises the President on the form in which the accounts of the Union and States should be maintained, ensuring uniformity and standardization.

• Account Compilation: It is important to note that the CAG does not compile and maintain the accounts of the Central Government. This duty is performed by the Ministry of Finance. The CAG's role is primarily to audit these accounts after they have been compiled.

• Independence: The CAG enjoys a high degree of independence, with security of tenure and removal from office similar to that of a Supreme Court judge, ensuring impartiality in audits.

• Reports: The CAG submits audit reports to the President (for Union Government accounts) and the Governor (for State Government accounts), which are then laid before Parliament or the State Legislature, respectively, for scrutiny by Public Accounts Committees