<p>The recent turn of events has highlighted the importance and role of Comptroller and Audit General (CAG), following its lashing audit reports on Commonwealth games and unraveling of 2G spectrum scam. More often than never, CAG is considered as a body solely responsible for scrutinizing government and government related activities. But its duties go beyond just the limitation of this statement.</p>
<p>In regards to his constitutional obligations, a CAG primarily examines various aspects of government expenditure. The audit done by CAG is generally bracketed as either regularity audit or performance audit. In trying to keep up with the changes in the fiscal developments, a CAG’s duty, today, ranges from checking whether the expenditure incurred by government and its bodies is in accordance with financial mandate of the Parliament, to checking whether collected revenues have been allocated properly or not. The regulatory audit helps keep a handy watch on the allocation of public funds while, on the other hand, performance audit has been brought into place to check the efficiency and effectiveness in utilization of public funds.</p>
<p>The standing of CAG body has gained much precedence in the last few years, credited to its outright conjuring of major financial shenanigans like the 2G spectrum scam. CAG as openly displayed irregularities in many government associated bodies including educational institutions like JNU, security sanctions, oil ministry and even the 2010 Commonwealth Games expenditure account. To put into light government’s indiscretion through media has been one of the significant changes in the role of CAG, and embracing this openness, a need exists to widen a CAG’s role that will focus on overseeing accountability of government to the public in gathering revenue and spending public money. This can help trigger a reform in fiscal derivatives and create a more transparent account of government’s actions. According to the Comptroller and Auditor-General’s (Duties, Powers and Conditions of Service) Act, 1971, CAG is authorized to make regulations for carrying into effect the provisions of this Act in so far as they are related to the scope and extent of the audit, including laying down the guidance of the government departments the general principles of government accounting and the broad principles in regard to audit of receipts and expenditure.</p>