Constitutional Body: The CAG is an independent constitutional authority established by Article 148 of the Constitution of India.
Appointment and Term: Appointed by the President, the CAG holds office for a term of six years or until the age of 65, whichever is earlier.
Scope of Audit (Statement i): The CAG audits all receipts and expenditures of government bodies, including those substantially financed by central or state revenues. This ensures accountability in public finance.
Form of Accounts (Statement ii): Article 150 empowers the CAG to recommend the forms in which the accounts of the Union and the states shall be kept. This standardization is crucial for consistent financial reporting.
Audit of Private Companies (Statement iii): The CAG's audit mandate primarily covers government entities and corporations. While they can audit private companies if specifically requested or if there's significant government funding involved, they do not audit all private companies irrespective of government involvement. Thus, statement iii is incorrect as it implies a universal audit power over private companies.
Role with Public Accounts Committee (PAC) (Statement iv): The CAG plays a vital role as the 'guide, friend, and philosopher' of the PAC. The CAG's audit reports form the basis for the PAC's examination of government expenditure, ensuring parliamentary oversight.
Independence: The CAG's independence is vital for unbiased auditing. They are removed from office in the same manner and on the same grounds as a Supreme Court Judge.
Key Reports: The CAG submits audit reports on the appropriation accounts of the Union and State governments, finance accounts, and reports on receipts. These reports are laid before Parliament or the State Legislature.
