Question

Which of the following statements is/are correct regarding 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, all appointed by the CAG.

• A. Only (i)
• B. Only (ii)
• C. Both (i) and (ii)
• D. Neither (i) nor (ii)

Answer 1

Answer:

A. Only (i)

Audit Board under the CAG

• The Audit Board was constituted in 1968.

• Its establishment was based on the recommendations of the Administrative Reforms Committee (ARC). The ARC, in its report, emphasized the need for a body to oversee the performance audit of government undertakings.

• The primary role of the Audit Board was to assist the Comptroller and Auditor General (CAG) in conducting performance audits of public sector undertakings.

• However, the Audit Board was abolished in 1990.

• The functions that were previously performed by the Audit Board are now carried out by the CAG directly or through specialized audit teams.

• Regarding the composition, statement (ii) is incorrect. The Audit Board did not consist of five members appointed by the CAG. Its structure and appointment process were different, and it was eventually discontinued.

Key Points for Competitive Exams:

• Remember the year of establishment: 1968.

• Key recommending body: Administrative Reforms Committee (ARC).

• Note the abolition year: 1990.

• Understand that its functions are now integrated within the CAG's mandate.