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Unit 3: Roles and Independence of Auditor

1. Audit Functions: The duties of Comptroller and Auditor-General includes audit of: Notes
a. All expenditure from the Consolidated Fund of India of Union, of each State and of
each Union Territory having a Legislative Assembly with the objective to ascertain
whether the moneys shown in the accounts as having been disbursed were legally
available for and applicable to the service or purpose to which they have been
applied or charged and whether the expenditure conforms to the authority which
governs it;

b. All transactions of the Union and of the States/Union Territory having a Legislature
relating to Contingency Funds and Public Accounts;

c. All trading, manufacturing, profit and loss accounts and balance-sheets and other
subsidiary accounts kept in any department of the Union or of a State and in each
case, to report on the expenditure, transactions or accounts so audited by him;
d. Receipts and expenditure of bodies or authorities substantially financed from Union
or State revenues;
e. Grants or loans given to other authorities or bodies;

f. Revenue of the Union and of the State Governments;
g. Accounts of stores and stock;
h. Government Companies and Corporations under the Company’s Act, 1956 read
with CAG’s (DPC) Act, 1971 ; and
i. Accounts of other authorities or bodies as per their statute or upon request by the
Governor of a State or the Administrator of a Union Territory having a Legislative
Assembly.
2. Accounting Functions: The Accounts Offices are responsible for:
a. Compilation of accounts of the State Government;

b. Preparation of the annual accounts of the States Governments and Union Territories
having a Legislative Assembly; and

c. Rendering accounting information and assistance to the State Governments.

3.4 Audit Reports

CAG presents a number of Audit Reports on the basis of audit of the Union Government and the
State Governments to the Parliament and State Legislature respectively under Article 151 of
the Constitution of India. In addition, CAG certifies the Appropriation Accounts and Finance
Accounts of the Union Government and of the State Governments and forwards them to the
President/Governors of States for being laid on the Table of Parliament and State Legislature
respectively. CAG also submits Separate Audit Reports on all statutory corporations and
autonomous bodies, for which he is the sole auditor.
The sectors under which CAG presents one or more volumes of his Audit Reports to Parliament
are:
1. Civil;

2. Autonomous Bodies;

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