The Comptroller and Auditor General (CAG) promotes accountability, transparency and Good Governance through high quality Auditing and accounting.The Comptroller and auditor general (CAG) of India is empower to audit all expenses from the combine Fund of the union or state governments, whether incurred within India or outside. 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.
Duties of the CAG
• Receipts and expenditure of the Union and the State Governments accounted for in the respective Consolidated Funds. • Transactions relating to emergency Funds (created for use in circumstances) and the Public Accounts (used mainly for loans, deposits and Remittances). • Trading, manufacturing, profit and loss accounts and balance sheets and other subsidiary accounts kept in any Government Department. • Accounts of Government organisations, Government companies and Government corporations whose statutes provide for audit by the CAG. • 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. • Accounts of bodies and authorities receiving loans and grants from the Government for specific purposes.
The duties of Comptroller and Auditor General includes audit of: ? 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; ? all transactions of the Union and of the States/Union Territory having a Legislature relating to Contingency Funds and Public Accounts; ? 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; ? receipts and expenditure of bodies or authorities substantially financed from Union or State revenues; ? grants or loans given to other authorities or bodies; ? revenue of the Union and of the State Governments; ? accounts of stores and stock; ? Government Companies and Corporations under the Company’s Act 1956 read with CAG’s (DPC) Act, 1971 ; and ? 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.
Compilation of accounts of the State Government; ? preparation of the annual accounts of the States Governments and Union Territories having a Legislative Assembly; and ? rendering accounting information and assistance to the State Governments.
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.
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The Comptroller and Auditor General of India (CAG) is an independent constitutional authority responsible for auditing the accounts of the Union and the States, as well as of public undertakings and local bodies. The CAG also conducts performance audits of the government’s programs and schemes.
The CAG Audit Reports are the most comprehensive and authoritative reports on the finances of the government. These reports provide detailed information on the government’s receipts and expenditures, as well as on its assets and liabilities. The CAG Audit Reports also identify any instances of financial irregularities or mismanagement.
The CAG Performance Audit Reports assess the efficiency and effectiveness of the government’s programs and schemes. These reports identify areas where the government can improve its performance and make better use of public Resources.
The CAG Special Audit Reports are conducted on specific issues or transactions that are of public interest. These reports have often highlighted major financial irregularities or scandals.
The CAG Reports on Public Undertakings assess the financial and operational performance of these enterprises. These reports identify areas where public undertakings can improve their performance and make better use of public resources.
The CAG Reports on Central Ministries and Departments assess the financial and operational performance of these government agencies. These reports identify areas where central ministries and departments can improve their performance and make better use of public resources.
The CAG Reports on State Governments and Local Bodies assess the financial and operational performance of these governments and their agencies. These reports identify areas where state governments and local bodies can improve their performance and make better use of public resources.
The CAG Reports on Public Sector Banks assess the financial and operational performance of these banks. These reports identify areas where public sector banks can improve their performance and make better use of public resources.
The CAG Reports on Insurance Companies assess the financial and operational performance of these companies. These reports identify areas where insurance companies can improve their performance and make better use of public resources.
The CAG Reports on Non-Banking Financial Companies assess the financial and operational performance of these companies. These reports identify areas where non-banking financial companies can improve their performance and make better use of public resources.
The CAG Reports on Cooperative Societies assess the financial and operational performance of these societies. These reports identify areas where cooperative societies can improve their performance and make better use of public resources.
The CAG Reports on Public Sector Undertakings in the Private Sector assess the financial and operational performance of these enterprises. These reports identify areas where public sector undertakings in the private sector can improve their performance and make better use of public resources.
The CAG Reports on Private Sector Companies assess the financial and operational performance of these companies. These reports identify areas where private sector companies can improve their performance and make better use of public resources.
The CAG Reports on Foreign Companies assess the financial and operational performance of these companies. These reports identify areas where foreign companies can improve their performance and make better use of public resources.
The CAG Reports on International Organizations assess the financial and operational performance of these organizations. These reports identify areas where international organizations can improve their performance and make better use of public resources.
The CAG Reports on Non-Governmental Organizations assess the financial and operational performance of these organizations. These reports identify areas where non-governmental organizations can improve their performance and make better use of public resources.
The CAG Reports on Individuals assess the financial and operational performance of these individuals. These reports identify areas where individuals can improve their performance and make better use of public resources.
The CAG Reports on Other Matters assess a variety of other issues, such as the government’s compliance with environmental regulations or its efforts to combat Corruption.
The CAG Audit Reports, Performance Audit Reports, and Special Audit Reports are all available on the CAG’s website. These reports provide valuable information on the finances and operations of the government and its agencies. They can be used by citizens, businesses, and other stakeholders to hold the government accountable for its use of public resources.
What is the CAG?
The CAG is the Chief Audit Executive of the Government of India. It is an independent body that audits the accounts of the central government, state governments, and public sector undertakings.
What are the functions of the CAG?
The CAG’s functions include:
Auditing the accounts of the central government, state governments, and public sector undertakings.
Reporting on the financial statements of the government.
Investigating cases of financial irregularities.
Advising the government on financial matters.
What are the powers of the CAG?
The CAG has the power to:
Inspect the accounts of any government department or public sector undertaking.
Summon any person to appear before it and give evidence.
Require any person to produce any document or record.
Take copies of any document or record.
What are the limitations of the CAG?
The CAG’s powers are limited in the following ways:
It cannot investigate cases of criminal misconduct.
It cannot recommend prosecution of any person.
Its reports are not binding on the government.
What are the criticisms of the CAG?
The CAG has been criticized for being too slow and bureaucratic. It has also been criticized for not being effective in preventing financial irregularities.
What are the reforms that have been proposed for the CAG?
The following reforms have been proposed for the CAG:
It should be made more independent.
It should be given more powers to investigate cases of financial irregularities.
Its reports should be binding on the government.
What is the future of the CAG?
The future of the CAG is uncertain. It is possible that it will be abolished or merged with another body. However, it is also possible that it will be reformed and given more powers.
Sure, here are some MCQs on the topics of auditing, accounting, and financial reporting:
Which of the following is not a purpose of an audit? (a) To express an opinion on the financial statements. (b) To provide assurance to users of the financial statements. (c) To detect fraud. (d) To identify errors.
Which of the following is not a type of audit? (a) Financial statement audit. (b) Operational audit. (c) Compliance audit. (d) Internal audit.
Which of the following is not a characteristic of an audit opinion? (a) It is an expression of the auditor’s professional judgment. (b) It is based on the auditor’s examination of the financial statements. (c) It is communicated in a written report. (d) It is intended to provide assurance to users of the financial statements.
Which of the following is not a component of the audit risk model? (a) Inherent risk. (b) Control risk. (c) Detection risk. (d) Audit risk.
Which of the following is not a type of audit risk? (a) Inherent risk. (b) Control risk. (c) Detection risk. (d) Audit risk.
Which of the following is not a factor that affects inherent risk? (a) The nature of the entity’s business. (b) The complexity of the entity’s accounting system. (c) The entity’s INTERNAL CONTROL system. (d) The auditor’s experience with the entity.
Which of the following is not a factor that affects control risk? (a) The effectiveness of the entity’s internal control system. (b) The nature of the entity’s business. (c) The complexity of the entity’s accounting system. (d) The auditor’s experience with the entity.
Which of the following is not a factor that affects detection risk? (a) The nature of the audit procedures. (b) The extent of the audit procedures. (c) The auditor’s experience with the entity. (d) The auditor’s professional judgment.
Which of the following is not a type of audit procedure? (a) Analytical procedures. (b) Tests of controls. (c) Substantive procedures. (d) Analytical procedures and tests of controls.
Which of the following is not a purpose of analytical procedures? (a) To identify unusual or unexpected relationships. (b) To test the reasonableness of financial statement amounts. (c) To assess the overall fairness of the financial statements. (d) To detect fraud.
Which of the following is not a type of test of control? (a) Walkthroughs. (b) Inspections. (c) Reperformance. (d) Analytical procedures.
Which of the following is not a purpose of tests of controls? (a) To determine whether the entity’s internal control system is effective. (b) To assess the risk of material misstatement. (c) To identify areas where additional substantive procedures are necessary. (d) To detect fraud.
Which of the following is not a type of substantive procedure? (a) Vouching. (b) Confirmation. (c) Analytical procedures. (d) Tests of controls.
Which of the following is not a purpose of substantive procedures? (a) To detect material misstatements in the financial statements. (b) To assess the risk of material misstatement. (c) To identify areas where additional tests of controls are necessary. (d) To detect fraud.
Which of the following is not a type of audit report? (a) Unqualified opinion. (b) Qualified opinion. (c) Adverse opinion. (d) Disclaimer of opinion.