02.

 CHAPTER 2  
COMPTROLLER & AUDITOR GENERAL OF INDIA  



2.1 The office of the Auditor General, as he was designated before the  inauguration of the Republic of India, was for the first time recognized  statutorily with the introduction of the Constitutional Reforms of 1919, and  in audit matters he was made independent of the Government of India by  Statute. Under the provisions of the Government of India Act, 1935, and  the Orders there under, as well as under the adaptations of the Act and  orders made as a result of the Indian Independence Act, 1947 the  independence of the Auditor General was fully secured and he continued  to be recognized as the head of the Indian Audit and Accounts  Department.  

1.The pay and allowances of the comptroller and auditor shall be charged upon which fund?
A:-Consolidated fund of India
B:-Contingency fund of India
C:-Public accounts of India
D:-Consolidated fund of each state
A:-Consolidated fund of India

2.2 The Constitution has installed the Comptroller and Auditor General as a  high independent statutory authority. He is the one dignitary who sees on  behalf of the Legislature that the expenses voted by them are not  exceeded or varied and that the money expended was legally available for  and applicable to the purpose or purposes to which it has been applied. 

Nothing can fetter his discretion or judgment in any manner as to the  matters which he may bring to the notice of the Legislatures in the  discharge of his duties.

His oath of office under the Constitution requires  him to uphold the Constitution and the Laws and to discharge his duties  without fear or favour, affection or ill will.

For the purpose of securing the  highest standards of financial integrity of the administration and watching  the interest of the taxpayer and also for purposes of Legislative control  over the entire executive Government and its officers, the Constitution  safeguards the independence and freedom of the Comptroller and Auditor  General in a variety of ways. Article 148 of the Constitution provides that  the Comptroller and Auditor General shall be appointed by the President  by warranty under his hand and seal and shall only be removed from  office in like manner and on the like ground as a Judge of the Supreme Court.

On his retirement, resignation or removal, the Comptroller and  Auditor General would not be eligible for any other office under the  Government. The pay and allowances of the Comptroller and Auditor  General, the pension etc. payable to a retired Comptroller and Auditor  General and the administrative expenses of his personal office shall be  charged upon the Consolidated Fund of India.  


2.The pay and allowances of the comptroller and auditor shall be charged upon which fund? 

        A:-Consolidated fund of India 

        B:-Contingency fund of India 

        C:-Public accounts of India 

        D:-Consolidated fund of each state 

        Correct Answer:- Option-A 

3.The Head of the Indian Audit and Accounts Department is
(A) Comptroller and Auditor General
(B) Chartered Accountant
(C) Accountant General
(D) None of the above

3.The Constitution has installed the...............as a high independent statutory authority.

(A) Speaker

(B) Finance Minister

(C) Prime Minister

(D) Comptroller and Auditor General


4.CAG of India is appointed by whom?

A:-Prime Minister of India

B:-Union Public Service Commission

C:-Chief Justice of India

D:-President of India


5.The pay and allowances of the Comptroller and Auditor General of India and the administrative expenses of his personal office shall be charged to

(A) Public Account of India

(B) Contingency Fund of India

(C) Consolidated Fund of India

(D) Sinking Funds


6.The pension of the retired Comptroller and Auditor General shall be charged upon the :

(A) The Consolidated Fund of India

(B) Obligations of Government

(C) Contingency Fund of India

(D) The Public Account of India


7.The C & AG of India can be removed from the office in the like manner and on the like ground as:

(A) Chief Election Commission

(B) Chief Vigilance Commission

(C) Judge of the High Court

(D) Judge of the Supreme Court


2.3 The administrative powers of the Comptroller and Auditor General will be  governed by rules made by the President after consultation with the  former as provided in clause (5) of Article 148 of the Constitution. He  derives his financial powers by delegation from the Union Government.  

1.The administrative powers of the Comptroller and Auditor General will be governed by rules made by :

(A) Chief Justice of Supreme Court

(B) The President of India

(C) Legislature

(D) Prime Minister


2.4 The duties and powers of the Comptroller and Auditor General in relation  to accounts and audit are contained in the Comptroller and Auditor  General’s (Duties, Powers and Conditions of Service) Act, 1971 passed by  Parliament under Article 149 of the Constitution.  

1.The C & AG's (DPC) Act, 1971 was passed by the Parliament under.....................of the Constitution of India.

(A) Article 142

(B) Article 149

(C) Article 340

(D) None of the above

2.The duties and powers of the C & AG in relation to accounts and audit are contained in the :

(A) Public Account Act

(B) Govt. of India Act, 1936

(C) Constitution of India

(D) C & AG's (DPC) Act, 1971


3.Duties being performed by Comptroller and Auditor General of India are based on :

(A) Government of India Act, 1936(Audit and Accounts Order, 1936)

​(B) C&AG’s (DPC) Act, 1971

(C) The Constitution of India

(D) Orders issued by the President of India




Duties and Powers Regarding Government Accounts  

2.5 Under Section 10 of the Act the Comptroller and Auditor General is  responsible for:-  

(a) compiling the accounts of the Union and of each State from the  initial and subsidiary accounts rendered to the audit and accounts  offices under his control by treasuries, offices or departments  responsible for the keeping of such accounts; and  അത്തരം അക്കൗണ്ടുകൾ സൂക്ഷിക്കാൻ ഉത്തരവാദികളായ ട്രഷറികൾ, ഓഫീസുകൾ അല്ലെങ്കിൽ വകുപ്പുകൾ മുഖേന അദ്ദേഹത്തിന്റെ നിയന്ത്രണത്തിലുള്ള ഓഡിറ്റ്, അക്കൗണ്ട് ഓഫീസുകളിലേക്ക് റെൻഡർ ചെയ്ത പ്രാരംഭ, അനുബന്ധ അക്കൗണ്ടുകളിൽ നിന്ന് യൂണിയന്റെയും ഓരോ സംസ്ഥാനത്തിന്റെയും അക്കൗണ്ടുകൾ സമാഹരിക്കുക; ഒപ്പം

(b) keeping such accounts in relation to any of the matter specified in  clause (a) as may be necessary;  (എ) വകുപ്പ് വ്യക്തമാക്കിയ ഏതെങ്കിലും കാര്യവുമായി ബന്ധപ്പെട്ട് അത്തരം അക്കൗണ്ടുകൾ സൂക്ഷിക്കുക;

However the President may, after consultation with the Comptroller and  Auditor General, by order, relieve him from the responsibility:  എന്നിരുന്നാലും, കം‌പ്ട്രോളറുമായും ഓഡിറ്റർ ജനറലുമായും കൂടിയാലോചിച്ച ശേഷം ഉത്തരവ് പ്രകാരം രാഷ്ട്രപതി അദ്ദേഹത്തെ ഉത്തരവാദിത്തത്തിൽ നിന്ന് ഒഴിവാക്കാം:

(i) for compiling the accounts of the Union (either at once or gradually  by the issue of several orders);  യൂണിയന്റെ accounts സമാഹരിക്കുന്നതിന് (ഒറ്റയടിക്ക് അല്ലെങ്കിൽ ക്രമേണ നിരവധി ഓർഡറുകൾ നൽകി);

(ii) for compiling the accounts of any particular services or departments  of the Union; or  Introduction to Indian Government Accounts and Audit  യൂണിയന്റെ ഏതെങ്കിലും പ്രത്യേക സേവനങ്ങളുടെ അല്ലെങ്കിൽ വകുപ്പുകളുടെ അക്ക comp ണ്ടുകൾ സമാഹരിക്കുന്നതിന്; അല്ലെങ്കിൽ ഇന്ത്യൻ ഗവൺമെന്റ് അക്കൗണ്ടുകൾക്കും ഓഡിറ്റിനും ആമുഖം

(iii) for keeping the accounts of any particular class or character.  ഏതെങ്കിലും പ്രത്യേക ക്ലാസ്സിന്റെയോ പ്രതീകത്തിന്റെയോ അക്കൗണ്ടുകൾ സൂക്ഷിക്കുന്നതിന്

Similarly the Governor of a State may, with the previous approval of the  President and after consultation with the Comptroller and Auditor General, by  order, relieve him from the responsibility in relation to a State. അതുപോലെ തന്നെ ഒരു സംസ്ഥാനത്തിന്റെ ഗവർണർക്ക് രാഷ്ട്രപതിയുടെ മുൻ അനുമതിയോടെയും കം‌ട്രോളർ, ഓഡിറ്റർ ജനറലുമായി കൂടിയാലോചിച്ച ശേഷം ഉത്തരവിലൂടെ ഒരു സംസ്ഥാനവുമായി ബന്ധപ്പെട്ട ഉത്തരവാദിത്തത്തിൽ നിന്ന് മോചനം നേടാം..


1.Authority competent to relieve the C&AG from the responsibility of keeping the accounts of the State with the approval of the President
(A)Supreme Court
(B) Council of Ministers
(C) Chief Minister
(D) Governor

2.6 Where, under any arrangement, a person other than the Comptroller and  Auditor General has before the commencement of the Act, been  responsible:  

(i) for compiling the accounts of any particular service or department  of the Union or of a State, or  

(ii) for keeping the accounts of any particular class or character,  

Such arrangement shall, notwithstanding anything contained in para 2.5  continue to be in force unless, after consultation with the Comptroller and Auditor  General, it is revoked in the case referred to in clause (i) by and order of the  President or the Governor of the State, as the case may be and in the case  referred to in clause (ii) by an order of the President. Prior to 15th December,  1971, the date on which the Act came into force, the Comptroller and Auditor  General was not compiling the accounts of:  

(a) Defence. Railway and certain other Departments of the Central  Government;  

(b) Lok Sabha and Rajya Sabha Secretariats;  

(c) The Union Territories of Goa, Daman and Diu and Pondicherry,  

and this arrangement was not revoked by the President. From 1st April  1976 and 1st July 1976, 1st October 1976, 1st April 1977 and 1st June 1980 the  President by specific orders, relieved the Comptroller and Auditor General from  the responsibility of compiling the accounts of the Central Ministries/  Departments and the accounts of the Union Territory of Delhi/ Andaman and  Nicobar Islands except the transactions relating to Central Civil Pensions and  Indian Audit and Accounts Department. Thus, the Comptroller and Auditor  General is now responsible for compiling the accounts of:  

(a) Central Civil Pensions & Indian Audit and Accounts Department;  (b) All States; and  

(c) The Union Territories of Chandigarh, Dadra and Nagar Haveli and  Lakshadweep.  

1.👧The C& AG's (DPC) Act, 1971 came into force with effect from:

(A) 01.07.1971

(B) 01.04.1971

(C) 15.12.1971

(D) 01.03.1971


2.7 Under Section 11 of the Act the Comptroller and Auditor General shall,  from the accounts compiled by him or the Government or by any other  person responsible in that behalf. Prepare each year Accounts (including  the case of accounts compiled by him. Appropriation Accounts) showing  under the respective heads the annual receipts and disbursements for the  purpose of the Union, of each State, and of each Union Territory having a  Legislative Assembly, and shall submit those accounts to the President or  the Governor of a State or an Administrator of the Union Territory having a  Legislative Assembly, as the case may be, on or before such dates as he  may, with the concurrence of the Government concerned, determine.  

2.8 However, the President may, after consultation with the Comptroller and  Auditor General, by order, relieve him from the responsibility for the  preparation and submission of the accounts relating to annual receipts  and disbursements for the purpose of the Union or of a Union Territory  having a Legislative Assembly; similarly the Governor of a State may, with  the previous approval of the President and after consultation with the  Comptroller and Auditor General, by order, relieve him from the  responsibility for the preparation and submission of the accounts relating  to annual receipts and disbursement for the purpose of the State.  

2.9 The Comptroller and Auditor General shall, in so far as the accounts, for  the compilation or keeping of which he is responsible, enable him so to do,  give to the Union Government, to the State Governments or to the  Governments of Union Territories having Legislative Assemblies, as the  case may be, such information as they may, from time to time, require,  and render such assistance in the preparation of their “Annual Financial  Statements” as they may reasonably ask for.  

2.10 In June 1978, the Comptroller and Auditor General was relieved of the  responsibility for the preparation of the Accounts showing under the  respective heads the annual receipts and disbursements of the Union  Government for the year 1977-78 and onwards and the responsibility was  entrusted to the Controller General of Accounts (Ministry of Finance).  

1.From 1977-78 onwards, the responsibility for compiling the accounts of the Union Government vests with:

(A) Comptroller and Auditor General

(B) Controller General of Accounts (Ministry of Finance)

(C) Finance Department

(D) Public Accounts Committee


2.In June 1978, the C&AG has been relieved of from the responsibility for the preparation of the accounts of the :

(A) State Govt.

(B) Union Territories with Legislature

(C) Union Govt.

(D) None of the above


3.Additional audit functions undertaken by the C&AG on mutually agreed terms with the State come under :

(A) Performance Audit

(B) Commercial Audit

(C) Consent Audit

(D) Nominal Audit


4.The responsibility of preparation of accounts of Union Government is now vested with whom?

(A) Comptroller and Auditor General

(B) Controller General of Accounts

(C) Niti Ayog

(D) None of these


2.11 Under Article 150 of the Constitution the accounts of the Union and the  States shall be kept in such a form as the President may after consultation  with the Comptroller and Auditor General prescribe. The word form has a  comprehensive meaning so as to include the prescription not only of the  broad form in which the accounts are to be kept but also the appropriate  heads under which certain transactions or classes of transactions have to  be entered. 

5.Under which Article of the Constitution, the accounts of the Union and the States shall be kept in such a form as the Comptroller and Auditor General prescribe ?

(A) 150

(B) 149

(C) 148

(D) 151


6.Under Article 150 of the Constitution of India the accounts of the State Government shall be kept on such a form as;

(A) The State Government desires

(B) The Accountant General of the State desires

(C) The State Legislation prescribes

(D) The President of India may, after consultation with the C & A G


2.12 Section 22 of the Act authorizes the Central Government to make rules  regarding the maintenance of accounts providing in particular, the  following:-  

(a) The manner in which initial and subsidiary accounts shall be kept  by the treasuries, offices and departments rendering accounts to  audit and accounts offices;  

(b) The manner in which the accounts of any particular service or  department or of any particular class or character, in respect of  which the Comptroller and Auditor General has been relieved from  the responsibility of compiling or keeping the accounts, shall be  compiled or kept; and  

(c) The manner in which the accounts of stores and stock shall be kept  in any office or department of the Union or of a State as the case  may be.  

Duties and Powers Regarding Audit  

2.13 The Comptroller and Auditor General is responsible in terms of Section  13, 16 and 17 of the Act: -  

(a) to audit all receipts which are payable into the Consolidated Fund  of India and of each State and each Union Territory having a  Legislative Assembly and to satisfy him self that the rules and  procedures in that behalf are designed to secure an effective check  on the assessment, collection and proper allocation of revenue and  are being duly observed and to make for this purpose such  examination of the accounts as he thinks fit;  

(b) to audit all expenditure from the Consolidated Fund of India and of  each State and of each Union Territory having a Legislative  Assembly and to ascertain whether the money shown in the  Accounts as having been disbursed were legally available for and  applicable to the service or purpose to which they have been  applied or charged and whether the expenditure conforms to the  authority which governs it;  

(c) to audit all transactions of the Union and of the States relating to  Contingency Funds and Public Accounts;  

(d) to audit all trading, manufacturing, profit and loss accounts and  balance sheets and other subsidiary accounts kept in any  department of the Union or of a State; and  

(e) to audit the accounts of stores and stock kept in any office or  department of the Union or of a State and in each case to report on  the expenditure, transactions or accounts so audited by him.  


7.Authority for audit of all trading and manufacturing and profit and loss accounts and balance sheet of departmental commercial concerns rests with:

(A) Accountant General

(B) Comptroller and Auditor General

(C) Union Commerce Ministry

(D) None of the above


8.The C & AG's duties and powers regarding audit are described in......... of the C & AG’s (DPC) Act, 1971.

(A) Sections 3, 4 and 5

(B) Sections 8,9 and 10

(C) Sections 10,11 &12

(D) Sections 13,16 & 17


9.In terms of which Sections of the DPC Act, the CAG is responsible for audit of transactions of various government departments and organizations?

(A) 13,16 and 17

(B) 10,11 and 12

(C) 11.12 and 13

(D) Section 11


10.It shall be the duty of Comptroller and Auditor General to audit all receipts which are payable into Consolidated Fund of India and of each State under:

(A) Section 10 of C&AG's (DPC) Act, 1971

(B) Section 14 of C&AG's (DPC) Act, 1971

(C) Section 16 of C&AG's (DPC) Act, 1971

(D) Section 18 of C&AG's (DPC) Act, 1971


2.14 He is also authorized by the Act to audit the following as well:-  

(a) The receipts and expenditure of bodies or authorities substantially  financed by grants or loans from Union or State or union territory  revenue, subject to the provisions of any law for the time being in  force applicable to the body or authority as the case may be.  

(b) The procedures by which the sanctioning authorities satisfy  themselves regarding fulfilment of conditions for the grants and  loans to any authority or body not being a foreign State or  International organization unless he has been relieved by special  orders of the President, Governor of a State or the Administrator of  a Union Territory (For exercising these checks the Comptroller and  Auditor General will generally have the right of access to the books  and accounts of such bodies).  

(c) The accounts of the Government Companies and deemed  Government companies in accordance with the provisions of the  Companies Act, 1956;  

(d) The accounts of Corporations (not being companies) established by  or under law made by Parliament in accordance with the respective  legislations.  

(e) The accounts of Corporations established by law made by the  Legislature of the State or the Union Territory on express request  made after consultation with him by the Governor of a State or an  Administrator of a Union Territory and on grounds of Public interest  (Request of this nature shall be made only after giving reasonable  opportunity to the Corporation to make representation in regard to  the proposal for audit by the Comptroller and Auditor General).  

2.15 The Comptroller and Auditor General can also be requested by the  President or a Governor of a State or an Administrator of a Union Territory  having a Legislative Assembly to undertake the audit of the accounts of  any authority or body the audit of accounts of which has not been  entrusted to him by law, or under any Law made by the Parliament, on  such terms and conditions agreed to between him and the concerned  Government. The Comptroller and Auditor General may also on his own  motion propose to the President or the Governor of a State or the  Administrator of a Union Territory having a Legislative Assembly that he  may be authorized to undertake the audit of accounts of any such body or  authority on the ground that a substantial amount is invested or advanced to such body or authority by the Central or State Government or by the  Government of a Union Territory having a Legislative Assembly and the  President or the Governor or the Administrator may permit the Comptroller  and Auditor General to do so if this is considered expedient in public  interest. I n the former case the Comptroller and Auditor General should  be consulted before hand and in both the cases a reasonable opportunity  is to be given to the concerned body or authority to make representation  with regard to the proposal for such audit.  


1.Who is the authority to request the C&AG to undertake the audit of accounts of any authority or body the audit of which has not been entrusted to him by law.

(A) President

(B) Governor

(C) Administrator

(D) Any of the above



2.16 The Comptroller and Auditor General shall have authority in so far as his  audit functions are concerned:  

(a) to inspect any office of accounts under the control of the Union or of  a State, including treasuries and such offices responsible for the  keeping of initial or subsidiary accounts, as submit accounts to him;  

(b) to require that any accounts books, papers and other documents  which deal with or form the basis of or are otherwise relevant to the  transactions to which his duties in respect of audit extend shall be  sent to such place as he may appoint for his inspection;  

(c) to put such questions or make such observations as he may  consider necessary, to the person in charge of the office and call  for such information as he may require for the preparation of any  accounts or report which it is his duty to prepare.  

1.Who is the authority to inspect any office of accounts under the control of the Union or of a State?

(A) Budget Committee

(B) Planning Commission

(C) Comptroller and Auditor General

(D) Finance Commission



2.17 Under Article 279 of the Constitution, the Comptroller and Auditor General  it to certify the net proceeds of taxes levied and collected by the Union but  assigned to the States, taxes levied and collected by the Union by  distributed between the Union and the States and taxes which are levied  and collected by the Union but authorized by Parliament to be distributed  between the Union and the States. Net Proceeds in relation to any tax or  duty means the proceeds thereof reduced by the cost of collection.  

Audit Reports  

2.18 As required under Article 151 of the Constitution and Section 49 of the  Government of Union Territories Act, 1963, the Comptroller and Auditor  General is to submit his reports containing the results of audit on the  Accounts of the Union or of a State or a Union Territory having a  Legislative Assembly to the President or the Governor or the  Administrator, as the case may be, who shall cause them to be laid before  the Parliament/Legislatures. The accounts submitted to the  Parliament/Legislatures with the reports embrace, besides the  Appropriation Accounts, the whole of the accounts of the Union or the  State/ Union Territory including the accounts showing under the respective  heads the annual receipts and disbursements.  


1.The Reports containing the results of audit of the C&AG of India relating to the accounts of the Union shall be submitted to

(A) The Speaker, Lok Sabha

(B) The President of India

(C) The Vice-President of India

(D) The Prime Minister of India


2.19 Duties to be performed by the Comptroller and Auditor General or powers  to be exercised by him under the provisions of the Act or any other law  any other law may be performed or exercised by any officer of the Indian  Audit and Accounts Department as may be authorized by the Comptroller  and Auditor General in this behalf by general or special order, provided  that except during his absence on leave or otherwise, no officer shall be  authorized to submit on his behalf any report which the Comptroller and  Auditor General is required by the Constitution or the Government of  Union Territories Act, 1963 to submit to the President or the Governor of a  State or the Administrator of a Union Territory having a Legislative  Assembly, as the case may be.  

1.CAG of India is appointed by whom? 

        A:-Prime Minister of India 

        B:-Union Public Service Commission 

        C:-Chief Justice of India 

        D:-President of India