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CMA Final · Corporate Financial Reporting · Government Accounting in India

Which statement best describes the role of the Comptroller and Auditor General of India (CAG) in government accounting?

The CAG audits the accounts of the Union and the States and submits audit reports, which are laid before Parliament or the State Legislatures. The office does not prepare the budget, approve estimates or authorise withdrawals, as those are executive functions.

  1. ACAG approves the budget estimates before presentation to Parliament
  2. BCAG audits the accounts of the Union and States and submits audit reports, which are laid before Parliament or State LegislaturesCorrect
  3. CCAG authorises withdrawals from the Consolidated Fund on behalf of the Ministry of Finance
  4. DCAG prepares the annual Union budget

Explanation

The CAG is the constitutional external auditor of Union and State accounts, and the audit reports go to the President or Governor to be laid before the legislature. Authorising withdrawals and preparing the budget are executive functions, not CAG functions.

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