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indianexpress.com
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of the armed forces are not audited by the normal process either. Who are the auditors? The CAG is appointed by the President for a term of six years on the recommendations of the Prime Minister. There are no guidelines for the appointment of a CAG and the Supreme Court has also upheld the powers of the legislature to appoint a CAG of its choice. However, once appointed, a CAG cannot be removed expect by impeachment; his powers, salary or pension cannot be tampered with by the government. The CAG exercises his mandate through officers of the Indian Audit and Accounts Department (IAAS) which is a civil services cadre. CAG as an institution has over 600 officers who carry out audits across various fields. IAAS officers are trained at the National Academy of Administration and get specialised training at the National Academy of Audit and Accounts and the National Institute of Financial Management. How does CAG decide what to audit? CAG audits government departments, PSUs and institutions that benefit from substantial government grants. CAG is meant to be a validation agency for all government expense. While individual departments choose their own yearly targets that are considered to be in public interest, an Audit Advisory Board guides the functioning of the institution and suggests fields of interest. The board has a variety of members with experience in different fields like governance, defence and financial institutions. The current board includes social activist Shabana Azmi as a member. Officials say that generally, issues of public interest are given high priority and news reports are keenly followed by decision makers. Why is CAG suddenly in the news? CAG has filed reports for decades but these were usually several years after the money had been spent. The past three years has seen the audits improved in quality, more up to date and on matters of current public interest, such as the CWG, 2G scam, Adarsh Housing Society scandal and the 26/11 attack. The reports are also more readable, going beyond complex accounts to elaborate on the implications of decisions. Also, recent reports have not shied away from naming persons and institutions involved. What has changed? By its own admission, CAG had been traditionally fixated with extracting petty faults in government functioning. Now, Vinod Rai (the CAG) has asked his organisation to move beyond the micro level. Today, we bring to bear a holistic approach focusing on the macro picture. Our attempt is to present the audit report at the earliest so that mid-course corrections can be undertaken. The mindset is positive so as to make recommendations for improvement, he said in a recent speech. This new approach has its followers but there is also criticism from
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many quarters about CAG overreaching its mandate and taking up a preaching role. Many in power argue that the institution needs to continue focus on auditing accounts and refrain from making recommendations as it has little administrative expertise. What difference do CAG reports make? CAG or its reports have no powers to penalise or punish. While bringing out discrepancies in public light itself can be a deterrent for offenders, CAG reports are looked into by the Public Accounts Committee (PAC) of Parliament that has the power to discuss specific cases and make recommendations to the government for action. In many cases, however, investigating agencies have taken information from CAG reports to press charges. Who audits the auditor? The CAG being the supreme audit authority of the country, it is not easy to find an auditor for him. To monitor itself, the CAG has set up a mechanism with its teams auditing each other. For example, auditors for Andhra Pradesh would audit the functioning of the Maharashtra team. In the case of the head office, which incurs major expenses, an arrangement has been made for audit by the supreme audit authority of another country. This year, for example, the audit agency of Australia will look into all accounts of the head office in Delhi. Close 1 Mail this page Recipient(s) name Recipient(s) e-mail address Your Name Your e-mail address Comments(optional) * * (Separate addresses by commas) * *
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