Question

Which of the following statements is/are correct about the Audit Board under the CAG?

i. The Audit Board was established in 1968 on the recommendation of the Administrative Reforms Committee.

ii. The Audit Board consists of five members, including a Chairman.

iii. The Chairman and members of the Audit Board are appointed by the CAG.

iv. The Audit Board is responsible for auditing government companies under the Companies Act.

• A. Only i and iii
• B. Only ii and iv
• C. Only i and iv
• D. Only ii and iii

Answer 1

Answer:

A. Only i and iii

Audit Board under the CAG of India

• The Audit Board was constituted in 1968.

• It was established based on the recommendations of the Administrative Reforms Committee (ARC).

• The primary objective of the Audit Board is to assist the Comptroller and Auditor General (CAG) in auditing government companies, corporations, and other statutory bodies.

• The Audit Board is composed of three members, not five, with the CAG serving as the ex-officio Chairman.

• The members of the Audit Board are appointed by the Comptroller and Auditor General (CAG).

• The Audit Board's recommendations are advisory in nature and are submitted to the CAG.

• The CAG retains the final authority and responsibility for the audit reports.

• While the Audit Board assists in auditing government companies, its scope is broader than just those under the Companies Act, potentially including other statutory bodies. However, statements regarding the exact number of members (five) and the specific responsibility solely for companies under the Companies Act might be points of confusion in exam questions.

Key Takeaways for Exams:

• Focus on the year of establishment (1968) and the recommending body (ARC).

• Note the actual strength of the Audit Board (three members) and the ex-officio position of the CAG as Chairman.

• Understand that the CAG makes the appointments.

• Distinguish between the Audit Board's advisory role and the CAG's final authority.