Consider the following statements in connection with the office of Comptroller and Auditor General of India (CAG):

I. CAG can be removed by the President only in accordance with the procedure mentioned in the Constitution but this does not mean that the CAG can be impeached from office in the same manner as a Judge of the Supreme Court

II. Some public corporations are audited exclusively by private professional auditors, and the CAG may have no involvement at all.

III. The CAG can conduct legal, regulatory and propriety audit but not performance audit.

IV. The Constitution of India has not specified any criterion for the appointment of CAG.

Which of the above statement/statements is/are valid?

Key Points

• Statement II is correct: Some public corporations are audited exclusively by private professional auditors, and the CAG may have no involvement at all.
• Statement IV is correct: The Constitution of India has not specified any criterion for the appointment of CAG.
• Statement I is incorrect: The CAG can be removed by the President only in accordance with the procedure mentioned in the Constitution, and it is similar to the removal of a judge of the Supreme Court.
• Statement III is incorrect: The CAG can conduct performance audits in addition to legal, regulatory, and propriety audits.

Additional Information

• Comptroller and Auditor General of India (CAG):
  • The CAG is an authority established by Article 148 of the Constitution of India, which audits all receipts and expenditures of the Government of India and the state governments, including those of bodies and authorities substantially financed by the government.
  • The CAG acts as a guide, friend, and philosopher to the Public Accounts Committee of the Parliament.
  • The CAG submits three audit reports to the President of India, who causes them to be laid before each House of Parliament: Audit Report on Appropriation Accounts, Audit Report on Finance Accounts, and Audit Report on Public Undertakings.
  • The CAG's (Duties, Powers, and Conditions of Service) Act, 1971 was enacted to define the duties and powers of the CAG.
• Audit Types Conducted by CAG:
  • Legal Audit: Auditing of legal compliance and regulatory adherence.
  • Regulatory Audit: Ensuring that financial regulations and guidelines are followed.
  • Propriety Audit: Examining whether the expenditure has been made prudently and in the interest of the public.
  • Performance Audit: Assessing the efficiency and effectiveness of government programs and operations.