School of Law Mitali Srivastava 2023 24 Powers and Functions of the CAG
Summary
TLDRThe video series explores the Controller and Auditor General of India's (CAG) critical role in ensuring financial accountability and efficiency. The CAG, empowered by the 1971 Act, acts as a custodian of financial narratives and conducts forensic audits. It scrutinizes financial activities from Union to state levels, ensuring compliance and financial integrity. The series delves into the audit process, including performance and system audits, and highlights the CAG's reports' significance in government decision-making. It also discusses the crucial oversight by committees like the Public Accounts Committee, emphasizing their joint role in maintaining financial norms and transparency.
Takeaways
- 📚 The Controller and Auditor General of India (CAG) plays a crucial role in upholding financial accountability and efficiency.
- 🏛️ The CAG's duties are categorized into maintaining accounts and conducting audits, serving as the custodian of financial narratives.
- 📜 The CAG derives its authority from the Controller and Auditor General's Duties, Powers and Conditions of Service Act of 1971.
- 🔍 The CAG has the power to scrutinize any office of accounts, from the Union to the states, and to summon accounts books, papers, and documents for review.
- 🗣️ Section 18 of the 1971 Act mandates the provision of facilities for CAG's inspection and compliance with requests for information.
- 📊 Audits conducted by the CAG include regularity, propriety, efficiency, performance, and system audits, ensuring a comprehensive examination of financial activities.
- 📝 The CAG compiles findings into comprehensive reports, which are formally presented to the government through Section 198 of the Act.
- 🔍 Performance audits evaluate economic use of resources, efficiency in optimization, and effectiveness in achieving program objectives.
- 🏢 Three key committees ensure financial accountability: the Estimates Committee, the Public Accounts Committee, and the Committee on Public Undertakings.
- 🛡️ These committees scrutinize expenditures, ensure funds are used as intended, and maintain adherence to financial norms and rules.
Q & A
What is the primary role of the Controller and Auditor General (CAG) of India?
-The primary role of the CAG is to uphold financial accountability and efficiency within the expansive realm of responsibilities, which includes the compilation and preservation of accounts, and conducting a forensic examination into the intricacies that sustain the financial pulse of the nation.
From which Act does the CAG derive its authority?
-The CAG derives its authority from the Controller and Auditor General's Duties, Powers and Conditions of Service Act of 1971.
What are the two overarching categories of duties that the CAG shoulders?
-The two overarching categories of duties are the meticulous compilation and preservation of accounts, and the crucial art of audit, which includes a forensic examination into the financial aspects of the nation.
What does the CAG do with the accounts books, papers, and documents it summons?
-The CAG scrutinizes the accounts books, papers, and documents for meticulous examination, poses queries, articulates observations, and engages in a substantive financial dialogue with the individuals in charge of these offices.
What is the significance of Section 18 of the 1971 Act?
-Section 18 of the 1971 Act is significant as it mandates not only the provision of facilities for the CAG's inspection but also compliance with requests for information in a comprehensive format and with expedited efficiency.
What are the specific sections of the Act that govern audits?
-The specific sections governing audits are Section 13 to 21, 23, and 24 of the Act.
What does the CAG's audit process entail?
-The CAG's audit process entails a comprehensive examination that includes audits against provisions of funds, regularity audits, propriety audits, efficiency audits, performance audits, and system audits.
How are the findings from the CAG's audit process presented?
-The CAG compiles all findings into a comprehensive report, which is then formally presented to the government through the provisions outlined in Section 198 of the Controller and Auditor General's Duties, Powers and Conditions of Service Act, 1971.
What are the key components evaluated in a performance audit?
-The key components evaluated in a performance audit include economy, efficiency, and effectiveness, which assess the acquisition, holding, and use of resources; optimization of resource use; and goal attainment, respectively.
What is the role of the three committees in ensuring financial accountability?
-The three committees - the Estimates Committee, the Public Accounts Committee, and the Committee on Public Undertakings - play a crucial role in ensuring financial accountability by scrutinizing expenditures, ensuring funds were available and applicable to designated services, and adhering to financial propriety and economy.
How does the CAG's work contribute to effective governance?
-The CAG's work contributes to effective governance by providing a road map for improvement through performance audits, ensuring transparency, and adherence to financial norms, which in turn safeguards financial integrity.
Outlines
📊 Role of CAG in Financial Accountability
The Controller and Auditor General of India (CAG) plays a pivotal role in upholding financial accountability and efficiency. The CAG's responsibilities are categorized into two main areas: maintaining financial records and conducting audits. The CAG is the custodian of financial narratives and is also tasked with auditing the financial pulse of the nation. The CAG's authority is derived from the Controller and Auditor General's Duties, Powers and Conditions of Service Act of 1971. It has the power to scrutinize any office of accounts, from the Union to the states, and can summon accounts, books, papers, and documents for detailed examination. The CAG can also requisition information to ensure completeness in the financial narrative. Section 18 of the 1971 Act emphasizes the provision of facilities for CAG's inspection and compliance with requests for information. The audit process includes various types of audits such as regularity, propriety, efficiency, and system audits. The findings are compiled into comprehensive reports presented to the government through Section 198 of the Act.
🔍 Performance Audit and Financial Accountability Committees
Performance audits evaluate the economics, efficiency, and effectiveness of resource utilization and program objectives. They are not just examinations but also provide a roadmap for improvement and effective governance. The financial accountability of the executive is ensured by three key committees: the Estimates Committee, the Public Accounts Committee, and the Committee on Public Undertakings. These committees scrutinize expenditures to ensure funds were legally available and applicable to designated services. They also check if expenditures conform to governing authorities and adhere to financial propriety and economy. The Public Accounts Committee (PAC) plays a crucial role in upholding financial accountability by scrutinizing appropriation accounts and CAG reports. The Committee on Public Undertakings (COPU) focuses on public undertakings, examining their reports and accounts to ensure adherence to sound business principles and commercial practices. These committees are integral to safeguarding financial integrity and supporting the CAG's operations.
Mindmap
Keywords
💡Controller and Auditor General (CAG)
💡Financial Accountability
💡Efficiency
💡Performance Audit
💡Consolidated Fund of India
💡Audit Process
💡Legislative Framework
💡Committees
💡Economical
💡Effectiveness
Highlights
Introduction to the role of Controller and Auditor General (CAG) in upholding financial accountability and efficiency.
CAG's dual responsibilities: compilation and preservation of accounts, and conducting audits.
CAG's authority derived from the Controller and Auditor General's Duties, Powers and Conditions of Service Act of 1971.
CAG's role as a hands-on inspector with the power to scrutinize any office of accounts.
CAG's ability to summon accounts books, papers, and documents for scrutiny.
CAG's dynamic discourse with individuals in charge of financial offices.
CAG's power to requisition information for a complete financial narrative.
Section 18 of the 1971 Act mandating provision of facilities for CAG's inspection and compliance with information requests.
Detailed audit process including regularity, propriety, efficiency, and system audits.
CAG's responsibility to audit all disbursements from the Consolidated Fund of India.
Compilation of audit findings into comprehensive reports presented to the government.
Performance audit components: economics, efficiency, and effectiveness.
Performance audits as a quest for improvement and providing a roadmap for governance.
Role of committees in ensuring financial accountability and adherence to norms.
The Estimates Committee's role in scrutinizing executive expenditures.
The Public Accounts Committee's focus on ensuring funds were legally available and applicable.
The Committee on Public Undertakings' examination of public undertakings' reports and accounts.
Committees' collective role in safeguarding financial integrity and supporting CAG's operations.
Conclusion on the powers of the CAG through the Controller and Auditor General's Act of 1971.
Transcripts
dear students hello welcome back to the
video series on controller and auditor
general of India as we move further in
the topic we will be unveiling the
pivotal role of CAG in upholding
Financial accountability and
efficiency within the expansive REM of
responsibilities the CAG shoulders
duties that bifurcate into two over
arcing categories firstly there is the
meticulous compilation and preservation
of accounts portraying the CAG as the
custodian of financial narratives
simultaneously the CAG undertakes a
crucial art of audit a forensic
examination into the intricacies that
sustain the financial pulse of the
nation CAG derives its Authority from
the controller and auditor General's
duties powers and conditions of Service
Act of
1971 in the pursuit of its duties the
CAG transcends the role of a distant
overseer assuming the character of a
handson inspector vested with the power
to scrutinize any office of accounts
spanning from Union to the states the
CAG possesses the authority to summon
the protagonist of its Financial
narratives comprising accounts books
papers and documents for meticulous
scrutiny however this Authority extends
beyond the mere perusal of documents it
encompasses a dynamic discourse the CAG
is empowered to pose queries articulate
observations and engage in a substantive
Financial dialogue with the individuals
in charge of these offices Additionally
the CAG can requisition information
mirroring the act of soliciting missing
pieces in a financial puzzle thereby
guaranteeing completeness in the
financial narrative moving on to section
18 of the 1971 act this provision
assumes prominence by elucidating a
reciprocal facet in this financial
engagement section 18 not only mandates
the provision of facilities for the
cag's inspection but also enjoins
compliances with requests for
information in a comprehensive format
and with expedited
efficiency let us delve into the
intricacies of the Audits and insightful
exploration into the regulatory
framework the specific Provisions
governing audits are meticulously
delineated in section 13 to 21 23 and 24
of the ACT section 13 in particular
confers upon the controller and auditor
general the pivotal responsibility of
auditing all dispersements originating
from the Consolidated fund of India the
audit process however is far from
straightforward it entails a
comprehensive
examination this encompasses audits
against provisions of funds regularity
audits propriety audits efficiency come
performance Audits and system audits
following this exhaustive audit process
the CAG meticulously compiles all
findings into a comprehensive report
these reports narrating the financial
Narrative of the government companies or
corporations find their formal
presentation to the government through
the provisions outlined in section
198 of the controller and auditor
General's duties powers and conditions
of Service Act
1971 now let's break down the components
evaluated in a performance audit
economics is like assessing a strategic
chess move they scrutinize whether
resource ources be it human Financial
material have been acquired held and
used
economically it's about ensuring that
public funds are utilized
reasonably efficiency on the other hand
is all about optimization it dels into
whether the available Financial human
physical and information resources are
used in a way that maximizes output for
a given set of inputs or minimizes input
for a given output Effectiveness takes
us into the REM of goal attainment it
assesses whether a program or activity
has achieved its objectives this
involves distinguishing between
immediate outputs and ultimate impact in
a sense performance audits are not just
examinations they are a quest for
improvement providing a road map for
Effective and efficient
governance furthermore let's navigate
through the intricate web of financial
accountability and the pivotal role
played by committees ensuring
transparency and adherance to financial
Norms in the legislative framework the
financial accountability of the
executive is a well orchestrated
Symphony conducted by by three
committees the estimates committee the
Public Accounts committee and the
Committee on Public undertakings the
pack and the copu meticulously dissect
the executives expenditures and ensures
that dispersed funds were both available
and applicable to the designated
Services they scrutinize whether
expenditures align with the governing
Authority
and adhere to the rules of financial
propriety and economy let's break down
the role of the Committees individually
the pack assumes a pivotal role in
upholding Financial
accountability its scrutiny of
appropriation accounts and CAG reports
involved ensuring that dispersed funds
were legally available and applicable to
the designated service or purpose the
committee meticulously ass assesses
whether expenditures conform to
governing authorities and if
reappropriations adhere to prescribed
Provisions the copu with laser focus on
public undertakings examines their
reports and accounts it gauges the
autonomy and efficiencies of these
entities ensuring adherence to sound
business principles and prudent
commercial practices Additionally the
copu exercises the functions vested in
the pack and the estimate committees
concerning public undertakings in this
intricate dance of oversight these
committees play a crucial role in
safeguarding financial integrity and the
cag's meticulous scrutiny ensuring a
robust foundation for their operations
thus from this segment we understood
that in India the controller and auditor
general wields Powers through controller
and auditor General's Act of
1971 I hope you learned more about the
duties and functions of the CAG and the
role of the Committees therein we'll see
you in the future video thank you
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