• 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
Appropriation Accounts.

• Types of audits done by CAG: Compliance Audit, Financial Attest Audit and Performance Audit.