Frequently Asked Questions |
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The Comptroller & Auditor General of India (CAG) is a Constitutional authority appointed by the President of India. Shri Shashi Kant Sharma is the current CAG of India.
Under the directions of the CAG, the Office of the Principal Accountant General (General & Social Sector Audit), Andhra Pradesh and Telangana conducts the audit of 21 departments and local bodies/PSUs/autonomous bodies thereunder in the State.
A list of Departments of Government of Andhra Pradesh and Telangana falling within the General and Social Sector is given below:
The authority for audit by the CAG is derived from Articles 149 and 151 of the Constitution of India and the Comptroller and Auditor General's (Duties, Powers and Conditions of Service) Act, 1971 (DPC Act). CAG conducts audit of expenditure of the General and Social sector departments of the Government of Andhra Pradesh and Telangana under Section 13 of the DPC Act. CAG is the sole auditor in respect of autonomous bodies/local bodies which are audited under sections 19(2) and 20(1) of the DPC Act. In addition, CAG also conducts audit, under Section 14 of DPC Act, of other autonomous bodies which are substantially funded by the Government. Principles and methodologies for various audits are prescribed in the Auditing Standards and the Regulations on Audit and Accounts, 2007 issued by the CAG.
Audit process commences with the assessment of risk of the department/organisation/ autonomous body/scheme, etc. based on the expenditure incurred, criticality/ complexity of activities, priority accorded for the activity by the Government, level of delegated financial powers, assessment of internal controls and concerns of stakeholders. Previous audit findings are also considered in this exercise. Based on this risk assessment, the frequency and extent of audit are decided and an annual audit plan is formulated to conduct audit.
After completion of audit of each unit, Inspection Report (IR) containing audit findings is issued to the head of the unit with a request to furnish replies within one month of receipt of the IR. Whenever replies are received, audit findings are either settled or further action for compliance is advised. Significant audit observations pointed out in these IRs, which require attention at the highest level in the Government, are processed for inclusion in the Audit Reports which are submitted to the Governor of Andhra Pradesh and Telangana under Article 151 of the Constitution of India for causing them to be laid on the Table of the State Legislature.
Heads of offices and the next higher authorities are required to respond to the observations contained in the IRs and take appropriate corrective action. The audit observations communicated in the IRs are also discussed in the meetings at district level by the officers of the departments with the officers of the AG’s office.
Lack of action on audit IRs and paragraphs is fraught with the risk of perpetuating serious financial irregularities pointed out in these reports, dilution of internal controls in the process of governance, inefficient and ineffective delivery of public goods/ services, fraud, corruption and loss to public exchequer.
The Comptroller and Auditor General of India (CAG)'s audit arrangements in respect of the Government of Andhra Pradesh and Telangana were restructured with effect from April 2012 with the aim of integrating audit efforts and presenting a sectoral perspective. Audit of Government offices, special purpose agencies, local bodies, Public Sector Undertakings, etc., has been integrated on suitable sectoral lines, such as ‘Social’, ‘Economic’, ‘Revenue’ and ‘General’.
The primary purpose of CAG’s Report is to bring to the notice of the State Legislature, significant results of audit. Auditing Standards require that the materiality level for reporting should be commensurate with the nature, volume and magnitude of transactions. The findings of audit are expected to enable the Executive to take corrective action, to frame appropriate policies as well as to issue directives that will lead to improved financial management of the organisations and contribute to better governance.
The Report of the CAG relates to matters arising from performance audit (Performance audit, besides including compliance audit, also examines whether the objectives of the programme/activity/ department are achieved economically, efficiently and effectively) of selected programmes and departments of the Government of Andhra Pradesh and Telangana, compliance audit (Compliance audit refers to examination of the transactions of the audited entities to ascertain whether the provisions of the Constitution of India, applicable laws, rules, regulations and various orders and instructions issued by the competent authorities are being complied with) of transactions of its various departments, Central and State plan schemes and audit of local bodies and autonomous bodies of the State pertaining to General and Social Sector.
Pursuant to this restructuring, from 2011-12 onwards, Audit Reports covering sector-wise State Government departments are being prepared separately by the CAG for submission to the Governor as per the provisions of the Constitution of India.