Comptroller And Auditor General

Important Constitutional Authorities – Comptroller And Auditor General

The Comptroller and Auditor General of India is a constitutional authority and his office has been provided for by the constitution. Article 148(1), states that there shall be a Comptroller and Auditor General of India. The President appoints him by warrant under his hand and seal. The Constitution authorises the Parliament, to determine the salary and conditions of service by law.

Accordingly, the Parliament has enacted the Comptroller and Auditor General (Conditions of Service Act) in 1953. According to the Act, the CAG shall hold office for a period of 6 years from the date he assumes office. However, he shall vacate office on attaining the age of 65 years if earlier than the 6 years term. The salary, allowances and pensions payable to the C & AG are charged to the Consolidated Fund of India, and therefore they cannot be subject to vote by Parliament. With reference to service conditions, the office of the C & AG has been equated to those of a Secretary to the Government of India.

The constitution provides that neither the salary nor the other conditions of service can be varied to his disadvantage after the appointment. On ceasing to hold office, the C & AG is not eligible for further employment either under the Government of India or under the Government of any State. The C & AĞ has to take an oath of office before assuming the functions. This oath has to be taken either before the President or any other person appointed by the President on his behalf. According to the provisions of the constitution mentioned in article 148(1), the Comptroller and Auditor General of India can only be removed from office in the same manner and grounds as a judge of the Supreme Court.

Duties and Powers of the C & AG

According to Article 149, the Comptroller and Auditor-General shall perform such duties and exercise such powers in relation to the accounts of the Union and of the States and of any other authority or body as may be prescribed by or under any law made by Parliament. The duties and powers of the C & AG have been prescribed by the Parliament by the C & AG Duties, Powers and Conditions Act, 1971.

Under this Act, the functions of the Comptroller and Auditor General can be divided into: Accounting Duties and Auditing Duties.

Accounting Duties

Prior to the 42nd Amendment, the C & AG was authorised to prescribe the form of accounts of the union and the states, with the approval of the President. After the 42nd amendment, the power to prescribe the form of accounts has been transferred to the President. By the 42nd amendment, the accounts of the union and of the states shall be kept in such form as the President may on the advice of the C & AG prescribe. Article 150 states that the Accounts of the Union and of the States shall be kept in such form as the President may, on the advice of the Comptroller and Auditor General of India, prescribe.

The C & AG performs the following accounting functions

  1.  He is responsible for the maintenance of accounts for the state governments and union territories having legislative assemblies.
  2. He has to submit these accounts to the Governor or the administrator.
  3. He certifies the accounts, of the Union prepared by the Controller General of Accounts.
  4. He prescribes the form in which the accounts are to be kept in the union and of the states. He provides information to the union/state governments for the preparation of their annual budgets.

Auditing Duties of the C & AG

The real duty of the C & AG is that of an auditor. The primary audit function is to verify the accuracy and completeness of accounts; to secure that all financial transactions viz., receipts and payments are properly recorded in the accounts, correctly classified and that all expenditure and disbursements are authorised and vouched and that all sums due, are recorded regularly in accordance with the demands and brought into account. He acts as a watchdog to see that the various authorities under the Constitution function in regard to financial matters, in accordance with the Constitution and the laws of Parliament and appropriate Legislatures and Rules and Orders issued thereunder. As per the CAG (DPC’s) Act, 1971 the auditorial functions of the C & AG are as follows: 1)

To audit all receipts into and expenditure from the Consolidated Fund of India and of each State and of each Union territory, having a Legislative Assembly. ii) To audit all transactions of the Union and the States relating to Contingency Funds, and Public Accounts. To audit all trading, manufacturing, profit and losses 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.

On To audit receipts and expenditure of bodies or authorities substantially financed from Union or State revenues. or To audit the accounts of Government, Companies and Corporations established by or under the Law of Parliament, or in accordance with the provisions of respective Legislations. To audit accounts of bodies or authorities by request.

Reports of the C & AG

  1. According to Article 151(1) and (2), the C & AG has to prepare an annual report for each of the Governments whose accounts are audited.
  2. The audit report contains the comments of the Audit authority on the correctness or otherwise of the expenditure and other financial transactions.
  3. The report particularly points out the more important financial irregularities like cases of budgetary grants being exceeded, failure to obtain the necessary sanction for expenditure, non-compliance with rules and regulations, cases of improper and wasteful expenditure and of misappropriation and embezzlement.
  4. He submits this report in the case of the Centre to the President and in the case of States to the Governor who is required by the Constitution to cause them to be laid before their respective legislatures.
  5. The legislatures refer the report to their Public Accounts Committee for examination and report.
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