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Topic hub · Public sector

Government audit and the CAG: how public money is audited

Government audit checks whether public money was spent as authorised, in line with rules, and with economy, efficiency and effectiveness. In India the Comptroller and Auditor General (CAG) is the constitutional authority for most of it, and its reports go to Parliament or the state legislature.

This hub gathers CORAA's guides on the CAG, how its reports are prepared and followed up, PSU and state audit, scheme and grant audits, and the working forms used to reply to audit queries. Each guide states what its facts rest on.

Each guide states what its facts rest on and what we could not verify. Standards and laws change, so confirm dates and wording against the primary source before relying on them.

Guides

The essential guides: start here.

Audit Basics · 14 Oct 2026
CAG Full Form: What the CAG Is and What It Audits
CAG stands for Comptroller and Auditor General of India. A short, direct answer on what the CAG is, what it audits, and who it reports to.
Audit Basics · 14 Oct 2026
Comptroller and Auditor General of India: Role, Appointment, Independence and Powers
What the CAG of India does, how the office is filled, why it is independent, and which audit powers come from the Constitution and the 1971 Act.
Audit Standards · 15 Oct 2026
CAG Audit Types: Financial, Compliance and Performance Audit
The three types of CAG audit compared: what each asks, the benchmark, the kind of conclusion, and one example of a department seen three ways.
Audit Basics · 14 Oct 2026
CAG Reports: How They Are Prepared, Tabled in Parliament and Followed Up
How a CAG report is made: audit, draft paragraphs, the six-week reply, signing, tabling under Article 151, and follow-up through committees and notes.
Audit Basics · 15 Oct 2026
Government Audit vs Private Sector Audit: The Key Differences
Government audit and private sector audit compared: who appoints the auditor, who gets the report, what is tested, and why propriety and value matter.
Industry Guides · 15 Oct 2026
PSU Audit: How Government Companies Are Audited Under the Companies Act
How a government company is audited: the CAG appoints the statutory auditor (s.139(5)), gives directions (143(5)) and can supplement the report (143(6)).
All guides on this topic
Free templates and tools

Ready-to-use working papers, no sign-up to look around.

Word template
Audit Query and Para Reply Register
Track each audit query or draft para from receipt to reply and closure, with evidence and promised action.
Word template
Grant Conditions and Utilisation Checklist
Check receipt, holding and use of a grant against its sanction conditions, with evidence and reporting checks.
Word template
CSR Spend Verification Certificate Format — Sec 135 (CA Issued, Word)
A CA certificate verifying CSR spend against the Section 135 obligation, project-wise — computes total spend and the unspent balance that must be transferred under Sec 135(5)/(6).
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Evidence and escalation tracker
Track audit requests, evidence received and escalations.
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Audit calendar builder
Turn your own due dates into a sorted timeline with overdue flags.
Frequently asked questions

Government and CAG audit: in plain words.

CAG stands for the Comptroller and Auditor General of India. It audits the accounts of the Union and the States and of many bodies that receive public money, and reports its findings to Parliament or the State Legislature. Check the Constitution and the CAG's own pages for the exact scope. Read more: What the CAG audits.
The CAG describes financial audit, compliance audit and performance audit. Financial audit looks at accounts, compliance audit at adherence to rules and authority, and performance audit at economy, efficiency and effectiveness. Read more: CAG audit types.
Under the Companies Act, the statutory auditor of a government company is appointed by the CAG and the CAG may also conduct a supplementary audit and comment on the auditor's report. Check the current text of the Act for the timelines. Read more: PSU audit explained.
Reports are generally examined by a legislative committee such as the Public Accounts Committee, which may ask the department to explain paragraphs and report on action taken. Procedures differ between the Union and states. Read more: How paragraphs are settled.
A utilisation certificate is the grantee's statement that a grant was spent for the purpose it was sanctioned. The sanction order and the grantor's rules set the format and time limit, so read them first. Read more: Grants and utilisation certificates.