What is role of CAG?

Q.  Which of the following is/are true?

1) CAG cannot conduct propriety audit.
2) CAG is responsible only to the Parliament.

- Published on 15 Mar 17

a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2

ANSWER: Only 2
    Role of CAG -

  • CAG makes sure that executive are responsible to the Parliament in the area of financial administration.

  • CAG undertakes audit of expenditure on behalf of the Parliament and hence is an agent of Parliament.

  • CAG is responsible only to the Parliament.

  • Along with legal and regulatory audit, CAG can also conduct propriety audit.

  • Propriety Audit is seeing that government expenditure follows ‘wisdom, faithfulness and economy’.

  • If not, CAG can comment on the wastage and extravagance of such expenditure.

  • While legal and regulatory audit is mandatory for CAG, the propriety audit is discretionary.

  • CAG cannot ask for details of secret service expenditure.

  • He has to just accept a certificate from administrative authority which says that the said expenditure has been incurred.

  • The Constitution of India sees CAG to be Comptroller as well as Auditor General.

  • But the CAG has no control over the issue of money from the consolidated fund and many departments are authorised to draw money by issuing cheques without specific authority from the CAG, who is concerned only at the audit stage when the expenditure has already taken place.

  • Thus he is just Auditor General and not a Comptroller.

  • But CAG of Britain has both powers of being Comptroller as well as Auditor General.

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