Article 148 to 151 of Indian Constitution

The structure by way of articles 148 to 151 in Part V makes provisions for a Comptroller and Auditor General of India for checking the accounts and assessing the soundness of the monetary transactions of the chief. The basic basis of the parliamentary system of the Government is the accountability of the chief to the legislature for all its actions. The legislature is able to enforce this responsibility only if it is competent to scrutinize the activities of the chief.

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Types of Audits carried out by CAG:

    Compliance Audit

    Compliance audit is usually called transaction audit by which some chosen transactions of an entity for a selected financial yr are chosen for audit scrutiny.

    An auditor doing compliance audit would examine what has been done/not done in a transaction in opposition to rule, sanction, provision and propriety. He checks whether a transaction:

    1. Conforms to sanction/provision of funds
    2. Adheres to all rules and regulations
    3. Adheres to rules of financial propriety, which transcend mere observation of guidelines.

  1. Financial Attest Audit
  2. Financial statements are ready by undertakings run by numerous departments, statutory firms, government companies and other autonomous bodies and authorities.

    CAG certify how far the accounts are ‘true and fair’ i.e., whether or not the monetary statements (accounts) are properly ready, full in all respects and are introduced with sufficient disclosures.

  3. Performance Audit
  4. Performance audits search to ascertain at what value and to what degree the insurance policies, programmes and tasks are working. Performance audit, aside from asking whether things are being accomplished in the right means, goes a step further and analyses whether the best issues are being carried out.

    In addition to all of the monetary audit checks, the Performance Audit seeks to evaluate whether a programme, scheme or activity deploys sound means to realize its meant socio-economic goals.

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