Question

With reference to the historical and current context of the CAG, consider the following statements: Which of the statements are correct?

1. i. V. Narahari Rao was the first CAG of independent India, serving from 1948 to 1954.
2. ii. The current CAG, K. Sanjay Murthy, is the 15th CAG of India, appointed in November 2024.
3. iii. The Audit Board was established to appoint technical experts for auditing specific government institutions.
4. iv. The CAG’s role in auditing public undertakings was introduced after the Companies Act was amended in 1976.

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

Answer 1

Answer:

C. i, ii, iii

Comptroller and Auditor General (CAG) of India

• Historical Context:

  • The office of the CAG in India has its roots in the British colonial era, established in 1857.

  • Statement (i): V. Narahari Rao is indeed recognized as the first Comptroller and Auditor General of independent India. He assumed office in 1948 and served until 1954. This appointment marked a crucial step in establishing independent financial oversight post-independence.

• Current Appointment:

  • Statement (ii): K. Sanjay Murthy is the current CAG of India. He is appointed as the 15th CAG and took office in November 2024. The CAG is appointed by the President of India and holds office for a term of six years or until the age of 65, whichever is earlier.

• Organizational Structure and Functions:

  • Statement (iii): The Audit Board was established to facilitate the appointment of technical experts. This board plays a vital role in enhancing the quality and scope of audits, particularly for specialized government institutions where domain expertise is essential. The CAG chairs this board.

  • The CAG is an independent constitutional authority under Article 148 of the Constitution of India.

  • CAG audits the accounts of the Union and State governments, including bodies and authorities substantially financed by the government.

• Auditing Public Undertakings:

  • Statement (iv): The CAG's role in auditing public undertakings was significantly strengthened and formally introduced not in 1976, but through the Companies Act of 1956 and subsequent amendments. The CAG is empowered to audit the accounts of government companies as per Section 617 of the Companies Act. While amendments have refined the process, the foundation was laid earlier than 1976. The Companies Act, 1956, paved the way for the CAG's audit mandate over public sector undertakings.