Solution:The Comptroller and Auditor General (CAG) is a constitutional functionary, independent of Parliament/legislature and executives. The CAG is responsible for-Audit of Ministries and departments of the Government of India and the State Governments.
Audit of the Central and State Government, Public Sector Undertakings and other autonomous bodies and authorities, which are financed from Government funds.
Audit of receipts of the Union or States.
Audit of accounts stores, and stock.
Audit of companies and corporations.
The broad objectives of an audit are to ensure legality, regularity, economy, efficiency and effectiveness of financial management and public administration mainly through assessment as to:
whether the financial statements are properly prepared, are complete in all respects and are presented with adequate disclosures (financial audit);
whether the provisions of the Constitution, the applicable laws, rules and regulations made there under and various orders and instructions issued by competent authority are being complied with (compliance audit); and
The extent to which an activity, Programme or Organisation operates economically, efficiently and effectively (performance audit).
Hence, option (b) is correct.
