Prelims 2012 · archive
MediumIn India, other than ensuring that public funds are used efficiently and for intended purpose, what is the importance of the office of the Comptroller and Auditor General (CAG)?
- 1.CAG exercises exchequer control on behalf of the Parliament when the President of India declares national emergency/financial emergency.
- 2.CAG reports on the execution of projects or programmes by the ministries are discussed by the Public Accounts Committee.
- 3.Information from CAG reports can be used by investigating agencies to press charges against those who have violated the law while managing public finances.
- 4.While dealing with the audit and accounting of government companies, CAG has certain judicial powers for prosecuting those who violate the law.
Which of the statements given above is/are correct?
Answer & explanation
Answer: (c) 2 and 3 only
The CAG is an audit authority, not a judicial one. His reports are laid before Parliament and examined by the Public Accounts Committee. Fraud and corruption noticed in audit can be reported directly to other authorities, so his findings can support action by investigating agencies. He has no special emergency role and no power to prosecute.
- ✗ 1. The CAG audits the accounts of the Union and the States under Article 149 and the 1971 Act. Nothing in these gives him an 'exchequer control' role that begins when a national or financial emergency is declared. In India he does not control the release of money from the Consolidated Fund at all.
- ✓ 2. Under Article 151, the CAG's reports on Union accounts are submitted to the President and laid before each House of Parliament. The Public Accounts Committee examines the Appropriation Accounts and the CAG's Report on them, so his reports form the basis of its work.
- ✓ 3. CAG audit reports become public once laid before Parliament. His audit regulations also provide for reporting cases of fraud and corruption noticed in audit directly to other authorities, under his general or special orders. Information from his audits can therefore be used by investigating agencies to act against those who violated the law in managing public funds.
- ✗ 4. The CAG's audit powers are to inspect offices of accounts, call for books and papers, and put questions. Government companies are audited in accordance with the Companies Act, as Section 19 of the 1971 Act provides. He has no judicial or prosecuting power; prosecution is for investigating agencies and the courts.
Remember · The CAG audits and reports; he does not prosecute or adjudicate. His reports go to Parliament (Art. 151), are examined by the PAC, and can help investigating agencies act on irregularities.
Sources
- CAG of India – Constitutional Provisions (Article 151, Audit Reports) ↗ “The reports of the Comptroller and Auditor-General of India relating to the accounts of the Union shall be submitted to the president, who shall cause them to be laid before each House of Parliament.”
- CAG of India – Legislation Committees (PAC/CoPU) ↗ “The PAC examines the Appropriation Accounts and Report of the CAG thereon as well as the annual Finance Accounts of the Government and any other accounts placed before the House.”
- CAG's (Duties, Powers and Conditions of Service) Act, 1971 – Sections 18 and 19 ↗ “The duties and powers of the Comptroller and Auditor-General in relation to the audit of the accounts of Government companies shall be performed and exercised by him in accordance with the provisions of the Companies Act, 1956”
- CAG of India – Regulations on Audit & Accounts, 2007 ↗ “Reporting of the cases of fraud and corruption noticed in audit directly to any other authorities shall be governed by the general or special orders of the Comptroller and Auditor General.”
Question: UPSC Civil Services (Preliminary) 2012, General Studies paper. Explanation: Minimalist IAS, checked 25 Oct 2026 (how we verify). ·