A CAG report is the final, corroborated record of what audit found, sent to the President or Governor and laid before the legislature. It is prepared in five steps: audit, draft paragraphs, a six-week reply from the department, signing by the CAG's office, and tabling under Article 151. After tabling, a legislative committee and the government's action taken notes carry it forward.
Last reviewed: 17 October 2026. Facts checked. We opened a Madhya Pradesh Accountant General page on cag.gov.in that summarises paragraphs 205 to 215 of the Regulations on Audit and Accounts, 2007, and a Tamil Nadu Accountant General FAQ page on cag.gov.in. We opened the cag.gov.in page that reproduces Article 151. We did not open the full 2007 Regulations (the page we found listed only links), so paragraph numbers rest on the Madhya Pradesh summary. We do not discuss the findings of any specific report.
What a CAG report is
A CAG FAQ page describes an Audit Report as one that "contains the final, fully corroborated audit findings". State reports can cover compliance audits, performance audits, the government's financial position and the certified State accounts (the Finance Accounts and the Appropriation Accounts). Background on the office is in the CAG's role and powers.
Step 1: Audit
Each audit office prepares an annual plan from a risk analysis. A CAG FAQ page lists factors such as the amount of expenditure, the strength of internal controls, past audit findings, media reports and government schemes. Audit teams then examine records and write up an inspection report for the unit audited.
Step 2: Draft paragraphs
The more significant findings are turned into draft paragraphs. For a State, the Accountant General (Audit) sends them to the Secretary of the department concerned, with a copy to the Finance Secretary, and offers to discuss them.
Step 3: The department replies
The Government has six weeks from the date of the letter to reply, unless another period is set. The Madhya Pradesh page says the reply should say:
- whether the facts are accepted,
- what the Government's comments are,
- how it responds to recommendations, and
- what remedial action it has taken.
If no reply comes in time, the Accountant General assumes the Government has no comments. A request for more time must give reasons and a date for the final reply. A CAG page notes that a satisfactory reply can lead to the paragraph being left out.
Step 4: Finalising and signing
The CAG decides the form, content and timing of audit reports. Finalised paragraphs go to the department Secretary and the Finance Secretary. An authorised officer then signs the report.
Step 5: Tabling
Article 151 sets the route. Reports on Union accounts go to the President, who has them laid before each House of Parliament. Reports on State accounts go to the Governor, who has them laid before the State Legislature. For a State, the signed report goes to the Finance Department, which submits it to the Governor. The page gives no fixed deadline for tabling, only "prompt action".
Reports under Section 19A of the 1971 Act go to the Secretary of the department concerned, who lays them before the legislature.
After tabling
| Step | Who | What happens |
|---|---|---|
| Referral | Legislature | Report goes to the Public Accounts Committee (PAC) or Committee on Public Undertakings (COPU) |
| Selection | Committee | Chooses paragraphs for hearings where the executive can be questioned |
| Support | CAG's office | Gives technical help and verifies facts and figures in the committee's draft |
| Action taken note | Department | Writes a note on lapses, responsibility, recoveries and remedial steps |
| Vetting | Accountant General | If asked, vets the note within one month |
If notes or replies are late, the Accountant General reports the delay to the Chief Secretary and may mention it in the report.
How to read a CAG report
- Start with the preface and the executive summary. They give the scope and the audit criteria.
- Note the period audited. Findings relate to that period only.
- Read the department's reply, where the report gives one. A report states when no reply was received.
- Separate observations from recommendations. A recommendation is advice, not an order.
Frequently Asked Questions
What is a CAG report?
It is the CAG's report to the President or Governor on audit of government accounts and activities. It is laid before Parliament or the State Legislature.
How long does the department get to reply to a draft paragraph?
Six weeks from the date of the letter, unless another period is specified, under the 2007 Regulations as summarised by a CAG page.
Who tables the CAG report?
The President (Union) or Governor (State) has it laid before the legislature under Article 151. The CAG does not table it directly.
What is an action taken note?
A note the department writes after tabling, answering the committee's recommendations and the audit paragraphs. It states causes, responsibility, recoveries and remedial steps.
Is a CAG report a court judgment?
No. It is an audit report. Committees and the government decide the follow-up.
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