Duties and Powers
The Comptroller and Auditor General of India (CAG) is the Head of the Indian Audit and
Accounts Department (IA&AD) and derives his constitutional standing as the Auditor of the
Union and State Governments from Articles 149 to 151 of the Constitution. The duties,
powers and conditions of service of the Comptroller and Auditor General are laid down in the
CAG’s (Duties, Powers and Conditions of Service) Act, 1971.
The statutory duties of the CAG include audit of:
• Receipts and expenditure of the Union and the State Governments accounted for
in the respective Consolidated Funds.
• Transactions relating to the Contingency Funds (created for use in emergency
circumstances) and the Public Accounts (used mainly for loans, deposits and
• Trading, manufacturing, profit and loss accounts and balance sheets and other
subsidiary accounts kept in any Government Department.
• Accounts of stores and stock kept in Government organisations, Government
companies and Government corporations whose statutes provide for audit by the
• Authorities and bodies substantially financed from the Consolidated Funds of the
Union and the States.
• Any body or authority even though not substantially financed from the
Consolidated Fund at the request of the President or the Governor.
Determine whether the financial statements fairly present the entity's operational results. B. Judge the appropriateness of an entity's program goals. C. Make recommendations for improving performance. D. Attest to whether the financial statements are prepared in accordance with generally accepted accounting principles. 12. The scope paragraph of an independent auditor's report on a financial ...
• Accounts of bodies and authorities receiving loans and grants from the
Government for specific purposes.
There is special arrangement for the audit of Government companies i.e. where equity
participation is 51 per cent or more. The primary auditors of these companies are Chartered
Accountants, appointed by the Union Government on the advice of the CAG. The CAG gives
directions to the Chartered Accountants on the manner in which the audit should be
conducted. He is also empowered to comment on or supplement the reports of the primary
auditors. In addition, he has the right to conduct audit of accounts of such companies and
report the results of audit to Parliament and State Legislatures.
A special feature of the audit of such Government companies and Public Sector Undertakings
is the periodic comprehensive appraisal of their working by the Audit Boards constituted by
the CAG. Experts in disciplines relevant to the operations of a PSU are appointed as members
of these Audit Boards. The Audit Boards undertake comprehensive appraisals in the form of
Audit Reviews of a few selected undertakings each year which are incorporated in the CAG’s
Commercial Audit Reports. Similar Audit Boards have also been set up in a few States for
audit of PSUs of the State Governments.
The Constitution provides that the format of the accounts of the Union and the State
Governments is prescribed by the President on the advice of the CAG. The CAG’s (DPC)
Act, 1971 authorises the CAG to lay down for the guidance of Government departments, the
general principles of Government accounting and broad principles applicable to audit of
receipts and expenditure. The CAG also plays a fiduciary role in federal financial relations.
Under Article 279 of the Constitution he ascertains and certifies the net proceeds of taxes
levied and collected by the Union but assigned to the States or distributed between the Union
and the States.
In addition to his audit responsibilities, the CAG continues to compile the accounts of the
State Governments except Goa. The accounts of Union Territories of Chandigarh and Dadra
The government of the United States is constantly changing. From the moment the country was born until today, there have been many eras and concepts that have transpired over the years. The United States federal government and state and local governments have gone through periods for transition from 1781 to the present day in which their relationships where continuously changing. In order to ...
& Nagar Haveli are also compiled by the Department.
The CAG authorises the salary and allowances to officers of a few State Governments. He
also authorises payment of pension and other retirement benefits to the employees of most of
the State Governments and Union Territories and maintains their Provident Fund Accounts.
Apart from the certification of Appropriation Accounts and Finance Accounts of the Union
and the State Governments and submission of Separate Audit Reports of Statutory
Corporations and other Autonomous Bodies for which the CAG is the sole Auditor, the CAG
brings out a number of Audit Reports relating to Union Government and the State
Governments. The broad categories of Reports being brought out by the CAG are as follows:
Union Government State Government
Autonomous Bodies Receipts
Scientific Departments Commercial
Post & Telecommunications
The CAG communicates his major findings and observations in the above Audit Reports
every year. These Reports and certified Finance and Appropriation Accounts are submitted to
the President or Governors for being laid before the Parliament or the State Legislatures.
Audit Reports on Public Sector Undertakings and Autonomous Bodies are sent to the
concerned Ministries or Departments for being laid before the Parliament or the State
Legislatures. Significant points in paragraphs / reviews included in various Reports of the
CAG for the year ended March 2000 are given in Chapter II and III of this Report.