Audit – Overview

Constitutional Foundation: Articles 148 to 151 of the Constitution of India provide the constitutional framework relating to the Comptroller and Auditor General of India.

Legal Framework: The duties and powers of the CAG are prescribed under Article 149 and relevant parliamentary legislation, including the CAG’s (Duties, Powers and Conditions of Service) Act, 1971.

Audit Scope: CAG audit covers accounts and transactions falling within its constitutional and statutory mandate, including State Government departments and other authorities or bodies as provided under law.

Independence: The CAG is a Constitutional Authority and the constitutional framework provides safeguards for its independence.

Reporting: Under Article 151(2), reports of the CAG relating to the accounts of a State are submitted to the Governor, who causes them to be laid before the State Legislature.

Legal Foundation: Andhra Pradesh State Audit Act, 1989 (Act No. 9 of 1989).

Purpose: The Act authorises the Director of State Audit to audit accounts relating to Local Authorities or other Authorities covered by the Act.

Audit Types: The Act defines “audit” to include pre-audit, current audit, post audit, cent percent audit, resident audit, test audit, special audit and such other examination of accounts as Government may specify.

Institutional Coverage: The framework applies to Local Authorities and other Authorities covered by the Act and its Schedule or provisions.

Audit Functions: Depending on the institution and mandate, work includes examination of accounts, transactions, receipts, expenditure, compliance with applicable rules and follow-up of audit objections.

Audit Reports / Surcharge: The Act provides a statutory framework for audit reporting and surcharge-related proceedings in accordance with the Act and applicable rules.