Comptroller & Auditor General of India Indian Audit & Accounts Service (IAAS)

1. KR SriramPrincipal Accountant General(Economic & Revenue Sector Audit)Andhra Pradesh Comptroller & Auditor General of IndiaIndian Audit & Accounts Service (IAAS)

2. Comptroller &Auditor General of India - Constitutional Provisions • Article 148 • Appointment of CAG; removal (similar to Supreme Court Justice); not eligible for further office • Conditions of service of staff of Indian Audit and Accounts Department (IA&AD) prescribed after consultation with CAG • CAG office expenditure “charged” on Consolidated Fund of India

3. Constitutional Provisions (Contd.) • Articles 149 & 150 • Duties and powers in relation to accounts prescribed by law made by Parliament; form of accounts of Union and States prescribed by President on advice of CAG • Article 151 • CAG’s Reports on Union submitted to President for laying in Parliament; Reports on State submitted to Governor for laying in State Legislature • CAG’s (Duties, Powers and Conditions of Service) Act, 1971

4. Audit Jurisdiction • Union & State Governments • Bodies or Authorities substantially financed by Government • Government Companies • “Entrusted” Audits • Audit of Urban Local Bodies (ULBs) and Panchayati Raj Institutions (PRIs) – Technical Guidance & Supervision

5. Audit of Union Government • Director General/ Principal Director of Audit • Ministries and Departments • Central Receipts • Defence • Indian Railways • Posts and Telecommunications • Overseas Establishments • Central Government PSUs

6. Audit of State Government • Principal Accountant General/ Accountant General • General & Social Sector Audit • Economic & Revenue Sector Audit • Restructuring of offices in April 2012

7. Accounting & Entitlement Functions for State Government • Principal Accountant General/ Accountant General (Accounts & Entitlements) • Compilation of monthly and annual accounts • Maintenance of Provident Fund accounts • Authorisation of Pension & Gratuity • House Building & Other Advances/ Payslips of selected categories of officials

8. Hierarchy ofOrganisation • Headquarters Office • CAG; Deputy CAGs; Addl. Deputy CAGs • Field Offices • Principal Accountant General/ Accountant General or Director General/ Principal Director • Senior Deputy AG/ Deputy AG or Director/ Deputy Director • Assistant Accountant General • Supervisory Officials • Sr. Audit/ Audit or Accounts Officers • Asst. Audit or Accounts Officers

9. Audit Approach • Regulations on Audit & Accounts • Auditing Standards • Types of Audit • Financial Audit • Correctness of financial statements • Compliance Audit • Compliance with laws, rules & regulations • Financial propriety • Performance Audit • Programmes/ schemes/ organisation/ activities • Economy of costs; efficiency of operations; and effectiveness (achievement of intended objective)

10. Audit Procedures • Prior intimation to office about proposed audit • Entry Conference (for performance audits) • Field audit work • Draft audit findings/ report for obtaining Departmental responses • Exit Conference • Audit Report • Follow-up • Examination by Public Accounts Committee/ Committee on Public Undertakings • Action Taken Reports

11. Recent Innovations in Audit • Performance Audits • Renewed focus/ resources applied to performance audits (reduced emphasis on compliance audits) • Guidelines & methodologies revised in line with international best practices • Compliance audits being revamped • Thematic audits • Department-centric audits • District-centric audits

12. Recent Innovations in Audit • Audit Techniques • Going beyond examination of files & documents to cover • Physical inspection of sites/ works • Survey of beneficiaries

13. Further Information • Website of CAG of India • www.cag.gov.in or www.saiindia.gov.in

14. Questions?