The Comptroller and Auditor General of India discharges his multifarious duties through the Indian Audit and Accounts Department. The Department consists of about fifty thousand employees and is functionally organised into 104 specialised formations throughout the country.
At the apex of the Indian Audit and Accounts Department is the office of the Comptroller and Auditor General of India which directs, monitors and controls all activities connected with audit, accounts and entitlement functions of the Department. It is responsible for development of organisational objectives and policies, audit standards and systems, management of the manpower and material resources of the Department and final processing and approval of the Audit Reports. For carrying out these responsibilities, it has been organised on a functional basis and there are separate divisions dealing with Accounts and Entitlements, Civil Audit, Railway Audit, Commercial Audit, Revenue Audit, Administration of Cadres, Training, Organisation and Methods, Inspection of field offices, IT/Is Activities etc. These divisions are headed by the Deputy / Additional Deputy Comptroller and Auditor General and Principal Directors. (Please click here for CAG's Organisation Chart)

Offices of the Accountants General (Audit) are responsible for audit of all receipts and expenditure of the State Governments, and audit of State Government companies, corporations and autonomous bodies.

Offices of the Principal Directors of Audit are responsible for audit of the activities of the Federal Government, including Civil Ministries and Departments, Overseas Establishments, Defense, Indian Railways and Posts and Telecommunications.
There is a separate organisational set up for the audit of Federal Public undertakings. At the apex of this organisation is the Deputy Comptroller and Auditor General (Commercial). The organisation is responsible for :-

• Test Audit/Supplementary Audit of transactions of Government Companies/ corporations, which finds final expression in an annual Audit Report bringing out selected topics of interest relating to them.
• In-depth performance appraisals of selected companies/ corporations, each such appraisal taking the form of a separate Audit Report.
• Certification of the annual accounts of companies and corporations including comments on the reports of Chartered Accountants, who conduct the primary audit of these companies.
• Preparation of a report on systems deficiencies reported by Chartered Accountants on the basis of directions by the Comptroller and auditor General.

Besides, there are also twenty six Offices of the Accountants Generals (Accounts and Entitlements) which handle the Accounting and Entitlement functions of the State Governments.

The audit activities are divided into convenient groups headed by Deputy Accountants General/Senior Deputy Accountants General who report to the Accountant General.These officers are designated as Deputy Directors / Directors under the control of Principal Directors of Audit, in respect of Audit of Central Government activities. The initial work of auditing (as well as accounting and entitlement functions still remaining with the Comptroller & Auditor General) is done in the various field formations of the organisation by auditors, clerks and accountants under the guidance and supervision of Assistant Audit Officers and Assistant Accounts Officers, who are in turn supervised by Accounts Officers or Audit Officers. Audit parties supervised by Audit Officers inspect the departmental offices and other organisations periodically and present inspection reports on their findings. Some of these parties conduct efficiency-cum-performance appraisals of elected projects/ programmes of the Governments.