With a view to ascertaining the extent to which a programme or organization operates economically, efficiently and effectively for the achievement of the designated objectives, the Comptroller and Auditor General has, in consultation with the Government of India established an Audit Board for the central public sector undertakings. The Audit Board is a permanent body for performance audits of the CPSEs conducted at periodic intervals focusing on critical areas of their performance and thematic issues. The Deputy Comptroller and Auditor General (Commercial) shall be the chairperson of the Audit Board, which shall include, all MABs
of the Indian Audit and Accounts Department and Ministries representative. The Audit Board
shall function in an advisory and recommendatory capacity.
The audits conducted by this office are broadly categorized under the following categories:
Financial Attest Audit
Financial Attest Audit (FAA) is primarily concerned with expression of audit opinion on a set of financial statements prepared by the CPSEs as per the Companies Act 2013. FA audits are designed to reduce the possibility of a material misstatement in the annual financial statements of the CPSEs and therefore, assure credibility to such statements.
Even though, the financial audits of the CPSEs are carried out by Chartered Accountants (Statutory Auditors) appointed by the C&AG in accordance with the provisions of the Companies Act, 1956, the O/o the MAB carries out a supplementary audit and comments if any, are issued. In respect of some of these bodies or authorities (under section 19 and 20 of the CAG’s DPC Act) C&AG acts as sole auditor and in that capacity, the MAB conducts financial audit of their annual accounts and issues audit report and certification on the financial statements.
Performance audit is an independent assessment or examination of the extent to which an organisation, programme or scheme operates economically, efficiently and effectively. It also contributes to accountability and transparency. The mandate of C&AG of India for performance audits is drawn from the Sections 13, 14, 15, 16, 17, 19 and 20 read with Section 23 of Comptroller and Auditor General's (Duties, Powers and Conditions of Service), Act 1971.
Compliance Audit is an assessment as to whether the provisions of the applicable laws, rules and regulations made there under and various orders and instructions issued by the competent authority are being complied with. The audit mandate of IA&AD is derived from the Articles 149 & 151 of the Constitution of India. The audit mandate of CAG, therefore, extends to statutory corporations, government companies, autonomous bodies legally organised as societies, trusts or not-for-profit companies, urban and rural local bodies (the third tier of government below the Union and State Governments) and also to any other body or authority whose audit may be entrusted to the CAG under law.
In addition, theme based and information systems audits are also take up every year as part of the Compliance Audit.