Comptroller and Auditor General of India (CAG) Initiative

Objective

The Comptroller and Auditor General of India has established a separate unit dedicated to auditing approximately 1,600 public sector undertakings (PSUs) managed by various state governments. This initiative aims to accelerate the audit process and improve the efficiency of public enterprises.

• New Audit Structure:
  • One dedicated location will handle audits for state PSUs of a specific state.
  • This is akin to the structure for central public sector enterprises, which already have a dedicated vertical for audits.

Current Challenges and Solution

• Currently, audits for state PSUs are managed by senior management overseeing multiple states, which is time-consuming.
• A dedicated vertical will consolidate information for all state PSUs, facilitating easier comparison for stakeholders.

Statistics

• There are approximately: 
  • 700 Central Public Sector Enterprises (CPSEs)
  • 1,600 State Public Sector Enterprises (SPSEs)
  • 485 Central Autonomous Bodies (CABs)
  • Over 700 State Autonomous Bodies

Digital Transformation and Remote Auditing

• The CAG is enhancing its remote auditing capabilities to improve efficiency and transparency.
• Initial efforts in remote/hybrid audits for GST, stamp duty, registration, and public works have been successful.
• There is a push towards engaging with executives to achieve complete digitization of work processes and expand hybrid audits nationwide.