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| Devising the relative position of the Indian CAG; A Comparative Study with that of the CAG of the United Kingdom | |||||||
| Paper Id :
16844 Submission Date :
18/11/2022 Acceptance Date :
22/11/2022 Publication Date :
25/11/2022
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| Abstract | The Comptroller and Auditor General of India is one of the Constitutional authorities in India.It is responsible for the sound financial Administration in the country. It has witnessed the glorious history of sound federal finance in post-independent India that has also evolved through amendments (viz, The Comptroller and Auditor General's (Duties, Powers and Conditions of Service) Amendment Act,1971 and many others), and innovations from other auditing institutions from some of the leading countries of the world. Interestingly,it is imperative to examine the relative position of the CAG of India as a way for further innovations and improvements so as to establish itself as an institution of international repute. On the face of it,the USA and the could be the best possibly fit comparative examples for the same. Both of them are liberal democratic societies with stable functioning offices of Comptroller and Auditor General. Also,UK' CAG being the parent philosophical guide of the CAG of India. | ||||||
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| Keywords | CAG, Financial Administration, Accountability,Senate, Amendment, House of Commons,SAI(Supreme Audit Institution). | ||||||
| Introduction |
The CAG's role is to uphold the Indian Constitution and parliamentary legislation in the field of financial management. The accountability of the executive branch (i.e. the Council of Ministers) to the Parliament in the area of financial management is ensured by audit reports from CAG. CAG is an agent for the legislature and conducts expenditure audits on behalf of Congress. He is therefore accountable only to Congress. The Constitution of India visualizes the CAG as an auditor and auditor.However, in practice, the CAG is fulfilling the role of an Auditor-General only and not that of a Comptroller.This is the point where we find differentiation between India CAG and that of the British CAG. InIn other words, CAG does not control the issuance of funds from the Consolidation Fund and many departments are authorized to withdraw funds by writing checks without confirmation from the CAG office. This is only affected during the review stage where the expenditure has already been made. In this respect, The Church of Almighty God in India is completely different from the Church of Almighty God in England, which has the authority of both the Comptroller and the Board of Auditors. In other words, in the UK, the executive branch can only withdraw money from the Treasury with CAG approval.
Meanwhile,CAG of India is only performing the role of an Auditor General and not of a Comptroller but in Britain it has the power of both Comptroller as well as Auditor General.In India, CAG conducts financial audits after disbursements are made. H. Ex post facts. In the UK, no money can be withdrawn from the Treasury without CAG's consent. In India, CAGs are not MPs while in the UK. CAG is a member of the House of Representatives. |
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| Aim of study | 1. To evaluate the role of the institution of CAG in post-independent India 2. To compare and contrast the CAG of India with the leading auditing institutions of some leading countries of the world. 3. To establish innovations and set standards for the auditing mechanism, parameters for standardization. | ||||||
| Review of Literature |
Ram Naresh Sharma, Shashi Bhushan Kumar (2018). The Research Article ''C&AG of India: An Instrument to Enhance Accountability, Probity and Good Governance'', has made critical evaluation of the overall institution of CAG in general, and its appointment process in particular. The Institution of Comptroller and Auditor General (C&AG) of India as has been envisaged in the constitution is a regulatory authority that is to assist the Central and State legislatures.Submit timely cost-effectiveness and periodic audits of relevant government spending to ensure proper use of funds allocated and approved by Congress. It is an essential tool for enhancing executive accountability to legislatures by providing fair and proper audits to detect fraud and embezzlement, thereby ensuring integrity and good governance. Indeed, this may be possible if the CAG's appointments are constitutionally impartial, independent of the executive and legislative branches, and free from executive branch interference.
Govind Bhattacharjee (2017). As per the evidence presented within the report of the Comptroller and Auditor General of India and studies elsewhere ''MGNREGA as Distribution of Dole,11 years of the ambitious scheme by the Mahatma Gandhi National Rural Employment Guarantee Act have been unable to bring qualitative transformation in rural population. This article does present many innovative ways to help ameliorate the outcome of this scheme. Thus, the article proved to be an attempt to streamline the said scheme with new orientations so as to make considerable impact on the targeted individuals.
Kaushal Nandita (2019). “Assessment of India’s Auditor General as India’s Supreme Audit Body”.This article details the Audit Body within the State Construction Process. Governments of all nations have a moral obligation to engage in all kinds of activities in which finances areessential. Governments must adhere to sound fiscal management policies and practices. During the financial year, the Government of India follows a full range of cash management activities with her three broad aspects: budgeting, accounting and auditing. Auditing plays a central role within the financial management system.There is a centralized auditing body, the highest level of which is the Indian Court of Auditors and the Court of Auditors, a British heritage with constitutional status. It is the country's premier auditing agency. As an official within the Constitution, his role is like a watchdog''. His intensive auditing has brought to light a number of financial asymmetries. Through his audit reports he is surely contributing to improving the state of fiscal management in the country but several issues remain mostly unexamined which act as defiances before the audit.
B.P. Mathur (2018). The article ''The Comptroller and Auditor General: Reform the Institution to Enforce Government’s Accountability'', mentions as an institution as has been envisaged in the Constitution for enforcing the accountability of the executive and as a watchdog that public money is used with due regard to wisdom, faithfulness and economy. To perform the work perfectly, there needs to be a fundamental restructuring of its organizational structure, which is an inheritance from the British. The need for time is to transform it into a top-level multi-person audit board and, through legal recognition and more autonomy, strengthen the position of the State Auditor who audits state-owned enterprises. In order to increase public confidence in the top office of , his appointment should be transparent and only professionals with proven competence should be appointed to this position. Governments should also recognize the important role that CAGs can play in the effective management and good governance of national finances.
Virek Aggarwal (2013). The article is titled 'CAG: India's Blessings on Corruption', India's Comptroller and Comptroller General heals surviving disease in rule-making body to prevent Indian economy from being ruined has played an important role in unscrupulous politician. Corruption, the root cause of many government policy failures, has been brought to the attention of Indian laymen through the CAG's relentless efforts. The judiciary has repeatedly relied on the CAG's reports to challenge policy failures and deviations from public interest objectives by various departments and divisions of central and state government.The Indubitably this constitutional body has played an important role in checking corruption in India, till today , as is evidenced in the article in its regulatory, environmental, and recommendatory function. However, the powers of the CAG need to be enhanced at the backdrop of growing instances of corruption , also many suggestions have been made at the end.
Ronojoy Sen (2013). ''Going Beyond Mere Accounting: The Changing Role of the CAG''.In this article he states: Regarding the CAG, he said during a debate in the Constituent Assembly (1946-49): Judiciary - he certainly should have been as independent as the judiciary.
Dr. K. Sivananda Kumar (2020). ''Article 148 Comptroller and Auditor-General of India''. The aforementioned article dealt with the constitutional provisions relating to the establishment of the CAG in an interesting way.This is an attempt to do away with the vagueness of understanding the jurisdictions of the Executive and that of the CAG, I.e., to minimize the variances between the two.
D Kapur and P B Mehta. (2007). This book ''Public Institutions in India: Performance and Design'', is an analytical study of India's public institutions. Its content ranges from the Parliament, the President's office , the Supreme Court, and that of the Comptroller and Auditor General. This text also asserts the constitutional and legal bases of the aforesaid institutions, their interrelationships and their mandate.
S. L. Shankdhar (1958). India and the United Kingdom Comptrollers and Comptrollers - A Comparison This article draws on the author's first-hand knowledge of the activities of the Public Accounts Commission in India and a discussion he had with Sir Frank Tribe in London some years earlier. It is based on. UK Auditor General.It draws parallels between the Auditor General of England to that of India, and has made some interesting observations.
Lakshmi Narain (1963). “Indian Auditors and Public Enterprises”. The above clause considers auditing to be one of the important instruments of control and accountability, and the auditing is in the hands of major public bodies, the auditors and auditors (hereafter referred to as C. & A.G.). Even more so when it is entrusted. exclusive. The purpose of this article is to explain the nature and effectiveness of this control method. First, let's take a historical look at the legal restrictions that are common in this scenario.
BP Mathur. (2006). "Audit Report on Sale." This article identifies certain internal complaints related to delays in audit reports on the sale of listed companies from 1999 to 2003 filed by the CAG and identifies a number of significant issues related to the operation of intentional sales. and raised several technical and methodological issues
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| Main Text | In India, CAG audits accounts after disbursement is made.
H. Ex post facts. In the UK, no money can be withdrawn from the Treasury
without CAG's consent. In India, CAGs are not MPs while in the UK. CAG is a
member of the House of Representatives. The Constitution of India (Article 148) provides for a
separate office of the Comptroller General of Accounts (CAG) of India. He is
Head of Audit and Accounting Department in India. He is the Treasury Manager and controls the
country's entire financial system at both the central and state levels. His
duty is to uphold the Indian constitution and parliamentary legislation in the
field of financial management. For this reason, Dr. B.R. Ambedkar said the CAG
should be the most important official under the Indian constitution. It is he
one of the bulwarks of India's democratic government system. The CAG
submits the President his three audit reports. The President submits
these reports to both Houses of Parliament. The Audit Committee will then
investigate them and report its findings to Parliament. The CAG's role is to
uphold the Indian Constitution and parliamentary legislation in the field of
financial management. In other words,the Executive branch's (i.e., Council of
Ministers) accountability to the lower House in the area of financial
management is ensured by audit reports from SAI. He is therefore accountable only to the Parliament. CAGs
have more freedom to audit expenses than they do to audit receipts,
inventories, and inventories. “The CAG determines the scope of its audits in
terms of expenditure and develops its own audit codes and manuals, but must
obtain administrative government approval in relation to the rules for
conducting other audits.In addition to this legal and regulatory check, SAI can
also perform regularity checks. He can examine the "prudence, honesty and
frugality" of government spending and comment on the extravagance of
such spending.Nevertheless, the Indian Constitution provides for the KAG as the
Comptroller and Comptroller. However, in practice, the CAG only acts as an
auditor, not as an auditor. In other words, “The CAG does not control the
disbursement of funds from the Consolidated Fund, and many departments are
authorized to withdraw funds by writing checks without specific authorization
from the CAG. , will only be affected at the audit stage where the expenditure
is made, which has already happened.In this regard, . Quite
differently,practiced in other words, in the UK, the executive branch can only
withdraw money from the Treasury with the consent of the CAG. Against this
background, the functioning of The Church of Almighty God in India is largely a
legacy of colonial rule.. The British Comptroller and Auditor General's
office The National Audit Office (NAO) is the independent
regulator of UK public spending. Help Congress hold government accountable and
help improve public services through quality audits. Independent of government
and civil servants. Gareth Davies, Chief Accountant (C&AG), heads his NAO.
He is an officer in the House of Representatives and has statutory powers to
audit and report on the financial accounts of all government departments and
other public bodies for auditing and reporting about the ways public money have
been spent. Furthermore, the he Public Accounts Commission
(TPAC), a parliamentary committee of MPs, oversees its activities.They have his
five-year strategy ambitious from his 2020 to his 2025. Their goal is to
improve our strategy. This will help Congress scrutinize public sector
performance, make more actionable recommendations that lead to better outcomes,
and share more of our independent insights. See our 2021-22 Annual Report and
Report for recent impacts. Also,CAG'S work helps Congress to scrutinize
governments, have a positive impact on finances, and make a difference in
people's lives.It Supports the work of the Public Accounts Commission (PAC).She
uses its report to conduct evidence sessions focused on public spending and
government policy implementation.Auditees often need to respond to PAC
recommendations based on our work. Report on issues affecting citizens.
Examples include government efforts to respond to the COVID-19 pandemic,
Windrush Compensation Scheme research, and reports on the Green Homes Grant
Scheme. Its activities have a positive financial impact through reduced costs,
improved services and other benefits to citizens. Its employees are experts in a variety of fields.
Together we review public spending and share insights to drive improvements in
the public sector. Secondly,CAG provide independent audit
opinions on approximately 400 accounts annually. C&AG verifies these
accounts and reports the results to Congress. 1. Audit public sector
accounts, including: 2. All Government Agencies 3. Enforcement Agencies 4. Independent Agencies 5. Statutory or Voluntarily
Audited Corporations 6. Some Charity insight can be
obtained. Thirdly,Report to Congress on whether
the government is providing value for money.It defines value for money as the
optimal use of resources (economy, efficiency and effectiveness) to achieve
intended results.It publish approximately 60 Value for Money reports annually.
These reports are impactful, timely and relevant, and address the complex
challenges facing governments. These reports provide recommendations on how governments
can achieve cost-effectiveness and improve services. Fourthly,It also issues corresponding
fact-finding reports when public spending issues arise.In carrying out its
work, the role is not to challenge the government's policy objectives. Find out
how governments spent money to implement these policies and whether that money
was used optimally to achieve the intended results.The team of experts provides
valuable and actionable insight on how to improve public services.These are
derived from extensive work focused on government priorities and see both
innovation and recurrence issues. Our insight activities include: Some International exposure to the CAG of India CAG'S International Jobs help it learn from other Supreme
Audit Institutions around the world and increase its own efficiency and
insight.CAG Collaborates with other auditing bodies and international forums to share experiences and collaborate
on global auditing issues.Some engagements are as follows: 2. The Comptroller and Auditor
General of India has been appointed as External Auditor of the Food and
Agriculture Organization (FAO) of Rome for a period of six years from 2020 to
2025. The Comptroller General took over this audit from her SAI in the
Philippines in May or June 2020. 3. CAG also seconded a senior
official to her FAO headquarters in Rome as Director of External Audit (DEA).
The DEA is responsible for risk assessment, audit planning, quality assurance
of audit results, liaison with FAO management, the Head of Governance (TCWG)
and internal audit. 4. External auditor of the
World Health Organization (WHO) for four years, 2020-2023. The Comptroller
General took over this audit from her SAI in the Philippines in May or June
2020. 5. The CAG has also seconded a
senior official to WHO Headquarters in Geneva as Director of External Audit
(DEA). The DEA is responsible for risk assessment, audit planning, quality
assurance of audit results, interfacing with WHO management, the Chief Watchdog
(TCWG) and internal audits. 6. Organization for the
Prohibition of Chemical Weapons (OPCW), The Hague India's Auditor General, from
2021 he will serve as an External Auditor of the Organization for the
Prohibition of Chemical Weapons (OPCW) for three years until 2023. The Auditor
and Auditor General will conduct this audit from SAI UK. 7. The Chief Auditor General
of India is the External Auditor of the IPU, Geneva for three years 2020-2022.
Switzerland in January 2021. 8. BRICS is a multilateral
forum by five major emerging countries: Brazil, Russia, India, China and South
Africa. SAI India attended the 2nd BRICS SAI Summit held virtually on 25th
August 2020 and coordinated by SAI Russia. Comptroller and Auditor General of
India attended to give a speech on SAI India's response to COVID-19, SAI to
ensure strict nationwide lockdown and adequate supply of medical equipment and
safety of medicines announced India's efforts.
9. The Indian Auditor General
is an active participant in the Triennial Commonwealth Auditors' General
Conferences. XXII.In March 2017, the General Assembly of the Federal Auditors
was hosted by His SAI of India in New Delhi, India. The theme of XXIII
Commonwealth Perspective lies under the overarching theme 'Promoting
partnerships for capacity building in public auditing'. |
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| Conclusion | India has one of the world's largest public sectors and has recognized the need to strengthen performance, accountability for results, and financial management systems. In this environment, the scope and complexity of the work of the Supreme Audit Authority of India (SAI of India) is critical. SAI audits span multiple levels of government, all departments of government, and different types of organizations. There is also great diversity in language, governance and development in the 28 states and her 7 Union Territories audited by CAG India. This environment highlights the importance of his role for CAG India in improving public sector performance and accountability, and will inevitably influence the audit approach CAG India chooses. In addition,at the request of India's Commissioner General of Accounts (CAG), an international peer review team reviewed the performance auditing function of India's SAI. The purpose of the peer review was to assess the extent to which CAG India's performance assurance function adheres to applicable standards of professional practice. Identify opportunities for improvement. The peer review team was led by the Australian National Audit Office and included his SAI representatives from Canada, Denmark, the Netherlands and the United States.. The peer review team examined 35 performance audits during this period. The review criteria are primarily based on the CAG's Auditing Standards and Performance Auditing Guidelines. This review compared his SAI performance auditing practices in India with internationally recognized practices. Interestingly, the peer review team also agreed that CAG India's Auditing Quality was conceptually sound and provided the basis for compliance with applicable standards of professional practice when conducting performance audits. However, the Auditing Quality needs to be strengthened to increase the level of assurance to CAGs that these audit requirements are being consistently met. Though, at the operational level, there were fluctuations in the compliance of CAG India's performance audit function with applicable standards of professional practice during the reporting period. Separate audit guidelines have been developed for all but one of the peer review samples and outline the plan for each audit. CAG India also interacted with audited entities in accordance with accepted practices. This includes attempts to conduct walk-in meetings and comments by submitting draft audit reports to audited entities. In addition, audit guidelines, drafts and key audit approvals of final reports were generally well documented by CAG India's senior management as part of the oversight of performance audits. Meanwhile, two relevant areas for improvement in the application of CAG India audit requirements relate to audit design and audit evidence. In particular, the development of achievable audit objectives, appropriate audit criteria, and the audit program necessary to meet audit objectives. The quantity and quality of evidence and documentation supporting the findings and conclusions of the performance audit. On the face of it,like other SAIs, CAG India continues to need to increase the application of relevant professional practices. This is especially important given the scale and complexity of CAG India's performance audit work and the number of people involved.At first glance, CAG India's performance audit function was evolving and at the time of the review, CAG India was pursuing further initiatives to improve its function. Stakeholders consulted by Peer's review team noted that the introduction of performance audit guidelines in 2004 significantly improved the conduct of audits and their alignment with audited entities. Stakeholders also provided positive feedback on the usefulness of CAG India's performance audit reports and the quality of recent reports. In addition, members of the Parliamentary Committee noted the good relationship between the Committee and CAG India, including the support CAG India gives to the Committee. | ||||||
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