• CAG and the Indian Audit and Accounts Department
(IAAD) – Supreme Audit Institution of India.
• Articles 148-151 of the Constitution deals with CAG.
• Article 148: There shall be a CAG of India who shall be appointed by the President by warrant under his hand and seal.
• Independent and unbiased nature CA is ensured by:
Appointed by the President of India.
Security of tenure: special procedure for removal,
like a Supreme Court Judge.
Salary and expenses of CAG – charged (not voted) from the Consolidated Fund of India.
Disallowed from holding any other Govt office after his/her term expires.
Duties of the CAG :-
• Under Article 149, Parliament had enacted the CAG’s Duties, Powers and Conditions Act in 1971.
• Article 150: the accounts of the Union and of the States shall be kept in such form as the President may prescribe.
Shall be based on the advice of CAG.
• Reports of the CAG – submitted to the President/Governor – Union/State respectively.
They table the report before the Parliament/State legislature.
Permanently referred to the Central and State Standing Committees on Public Accounts and Public Undertakings.
• Types of CAG reports:
Compliance and performance audit reports –
covers revenue collection and expenditure of
Separate audit reports on the functioning of certain autonomous bodies.
Reports on the financial position of Central and State Governments.
Reports on the adherence to the Appropriation Acts passed by Parliament and Legislatures.
Certified annual accounts of the States to the State Legislatures: the Finance and
• Types of audits done by CAG: Compliance Audit, Financial Attest Audit and Performance Audit.