Comptroller and Auditor General of India (CAG)

ALL ABOUT CAG 
In a democracy, those holding power and positions of responsibility must be answerable for their actions. For this purpose the Constitution has mandated several institutional mechanisms like the Judiciary, Vigilance bodies and an independent Supreme Audit Institution (SAI).The Comptroller and Auditor General of India (CAG) and the Indian Audit and Accounts Department (IAAD) functioning under him, constitute the Supreme Audit Institution of India. The Constitution of India has mandated us as the auditors to the nation. We are thus an instrument for ensuring accountability. Articles 149-151 of the Constitution prescribe the unique role of the CAG. 
How is the independence of the CAG ensured?  
The Constitution enables the independent and unbiased nature of audit by the CAG by providing for: His appointment by the President of India Special procedure for removal (like a Supreme Court Judge) Salary and expenses Charged (not Voted) to the Consolidated Fund of India Disallowing his holding any other Government office after his term expires
What are the duties of the CAG?  
As envisaged in Article 149 of the Constitution, the Parliament enacted a detailed legislation called the CAG’s Duties, Powers and Conditions Act in 1971 which describes his mandate and puts almost every spending, revenue collecting or aid/grant receiving unit of the Government (the Centre and the States) under his audit domain. His duties are to audit and report upon:
         All receipts into and spending from the coffers (called the Consolidated Fund) of the Union and State Governments.
        All transactions relating to the Emergency expenses (called Contingency Funds) and relating to the monies of the public held by the Government e.g. Postal savings, Vikas Patras (called Public Accounts) at Central as well as State levels.
        All trading, manufacturing, profit and loss accounts, balance sheets and other subsidiary accounts kept in any Government department.
        All stores and stock accounts of all Government offices and departments.
        Accounts of all Government companies and Corporations e.g. ONGC, SAIL etc. Accounts of all autonomous bodies and authorities receiving Government money e.g. municipal bodies, IIM's, IIT's, State Health societies.
        Accounts of any body or authority on request of the President/Governor or on his own initiative.   The Act also provides for compilation of accounts of the State Governments from the subsidiary accounts maintained by the State Governments.
What powers does the CAG have to perform his role?  
In order to carry out his wide audit mandate in an unfettered manner the Act provides for:
   Power to inspect any office or organisation subject to his audit.
   Power to examine all transactions and question the executive.
   Power to call for any records, papers, documents from any audited entity.
   Power to decide the extent and manner of audit.
What types of Reports does the CAG bring out?  
The Audit Reports of the CAG submitted to the Parliament and State Legislatures consist of compliance and performance audit reports covering revenue collection and expenditure of Government, separate audit reports on the functioning of certain autonomous bodies as provided by legislation, reports on the Financial position of Central and State Governments and reports on the adherence to the Appropriation Acts passed by Parliament and Legislatures. The CAG also submits the certified annual accounts of the States, known as the Finance and Appropriation Accounts, to the State Legislatures.
What happens to the Audit Reports?  
The reports of the CAG are submitted to the President in case of the Union and to the Governor in case of the State who in turn cause them to be tabled before the House. Once tabled in the House, the Reports stand permanently referred to the Central and State Standing Committees on Public Accounts (PAC)/Committees on Public Undertakings (COPU). These specialised committees have been constituted to facilitate timely and intensive scrutiny of the Annual Accounts and the Audit Reports thereon. The Committees select those findings and recommendations from our reports that they judge to be the most critical to the public interest and arrange for hearings on them. We provide technical assistance to the Committees in this task. At the hearings of the Committees, the executive can be called to account for their actions/inactions. Based on their Examination, the Committees prepare and submit their reports to the Legislature that summarise the Committee's hearings, the action taken by the executive and include recommendations to improve administrative practices and procedures.