The Attorney-General and the C.A.G. (Part-II)

Total Questions: 29

11. Which one of the following duties is not performed by Comptroller and Auditor General of India? [U.P.P.C.S. (Mains) 2004, I.A.S. (Pre) 2001]

(a) To audit and report on all expenditure from the Consolidated Fund of India.
(b) To audit and report on all expenditure from the Contingency Funds and Public Accounts.
(c) To audit and report on all trading, manufacturing, profit and loss accounts.
(d) To control the receipt and issue of public money. and to ensure that the public revenue is lodged in the Exchequer.

Correct Answer: (d) To control the receipt and issue of public money. and to ensure that the public revenue is lodged in the Exchequer.

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.

12. Consider the following statements: [M.P.P.C.S. (Pre) 2020]

(i) It shall be the duty of the Comptroller and Auditor - General to audit all receipts which are payable into the Consolidated Fund of India.

(ii) The Comptroller and Auditor General shall have authority to audit and report on the accounts of stores or stock kept in any office or department of the Union or a State.

Choose the correct statement.

(a) Both (1) and (ii) are incorrect.
(b) Both (1) and (ii) are correct.
(c) (i) is incorrect but (ii) is correct.
(d) (1) is correct but (ii) is incorrect.

Correct Answer: (b) Both (1) and (ii) are correct.

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);

The extent to which an activity, Programme or Organisation operates economically, efficiently and effectively (performance audit).

Hence, option (b) is correct.

13. In India, other than ensuring that public funds are used efficiently and for the intended purpose, what is the Importance of the office of the Comptroller and Auditor General (CAG). [I.A.S. (Pre) 2012]

1. CAG exercises exchequer control on behalf of the Parliament when the President of India declares national emergency/financial emergency.

2. CAG reports on the execution of projects or programmes by the ministries are discussed by the Public Accounts Committee.

3. Information from CAG reports can be used by Investigating agencies to press charges against those who have violated the law while managing public finances.

4. While dealing with the audit and accounting of government companies, CAG has certain judicial powers for prosecuting those who violate the law.

Which of the statement(s) given above is/are correct?

(a) 1,3 and 4
(b) Only 2
(c) 2 and 3
(d) 1, 2, 3 and 4

Correct Answer: (c) 2 and 3

Solution:The Comptroller and Auditor General (CAG) of India is and authority, established by the Constitution of India under Article 148, which audits all receipts and expenditures of Government of India and the State Government. CAG reports on the execution of projects or programmes by the ministries are discussed by the Public Accounts Committee, and investigating agencies can press charges on facts based on CAG reports.

14. The ultimate responsibility of taking due action on the comments of the Comptroller and Auditor General vests with- [U.P.R.O/A.R.O. (Mains) 2014]

(a) President of India
(b) Supreme Court
(c) Parliament
(d) National Development Council

Correct Answer: (c) Parliament

Solution:The Parliament is the ultimate authority to take appropriate action on the reports of the Comptroller and auditor general. The Public Account Committee of Parliament debates extensively on these reports. Article 151 (1) of the Constitution is related to the Audit report of CAG. The reports of the Comptroller and Auditor-General of India relating to the Accounts of the Union shall be submitted to the President who shall cause them to be laid before each house of Parliament.

15. Who amongst the following attends the meetings of the Public Accounts Committee of the Parliament? [U.P.P.C.S. (Mains) 2011]

(a) Attorney General of India
(b) Solicitor General of India
(c) Comptroller and Auditor General of India
(d) None of the above

Correct Answer: (c) Comptroller and Auditor General of India

Solution:The Comptroller and Auditor General of India attends the meeting of the public Account Committee of the Parliament. Article 149 prescribes those duties and powers which shall be performed and exercised by him.

16. Which Article of the Constitution prescribes the duties of the comptroller and Auditor General of India? [M.P.P.C.S. (Pre) 2019]

(a) Article 146
(b) Article 147
(c) Article 148
(d) Article 149

Correct Answer: (d) Article 149

17. Match the following List-P (CAG) with List-R (Articles): [Raj. P.C.S. (Pre) 2023]

List-P	List-R
A. Appointment of CAG	I. Article 148
B. Duties and Powers of CAG	II. Article 151
C. Form of Accounts of the Union	III. Article 149
D. Audit Reports	IV. Article 150

Code:
	A	B	C	D
(a)	I	III	IV	II
(b)	II	III	I	IV
(c)	III	I	IV	II
(d)	II	III	IV	I

Correct Answer: (a)

Solution:The correct matches are as follows :

List-P	List-R
Appointment of CAG	Article 148
Duties and Powers of CAG	Article 149
Form of Accounts of the Union	Article 150
Audit Reports	Article 151

18. The Comptroller and Auditor General is appointed by the President. He can be removed- [U.P.P.C.S. (Pre) 200]

(a) By the President
(b) On an address from both Houses of Parliament
(c) By the Supreme Court
(d) On the recommendation of the President by the Supreme Court

Correct Answer: (a) By the President

Solution:Article 148(1) of the Constitution of India, says that there shall be a Comptroller and Auditor-General of India who shall be appointed by the President by warrant under his hand and seal and shall only be removed from office in like manner and on the like grounds as a Judge of the Supreme Court. According to the Article 124(4) of the Constitution, a Judge of the Supreme Court shall not be removed from his office except by an order of the President passed after an address by each House of Parliament supported by a majority of the total membership of that House and by a majority of not less than two-thirds of the members of that House present and voting, has been presented to the President in the same session for such removal on the ground of proved misbehaviour or incapacity. So, we can say that the Comptroller and Auditor General can be removed by the President after an address in both Houses of the Parliament.

19. Which among the following is not true about the Comptroller and Auditor General of India? [Jharkhand P.C.S. (Pre) 2023]

I. The administrative expenses of his office are subject to vote of Parliament.

II. He is not eligible for further office under the Government of India or of any State after he quits office.

III. The CAG can be removed from office on the ground of proven incapactiy or misbehaviour after address by both the houses of Parliament.

Select the correct answer:

(a) Only 1
(c) Only II
(b) Only II and III
(d) Only I and III

Correct Answer: (a) Only 1

Solution:The administrative expenses of the office of the C.A.G. shall be charged to the consolidated fund of India (Article 148(6)). The salary and other conditions of service of the C.A.G. shall be such as many be determined by Parliament by law and, until so determined, shall be as specified in the second schedule [Article 148(3)]. C.A.G. is not eligible for further office either under the government of the Union or the State [Article 148(4)]. CA.G. shall be removed from office in like manner and on grounds as a judge of the Supreme Court [Article 148(1)].

20. The Comptroller and Auditor General of India is a friend and guide of: [U.P.P.C.S. (Mains) 2006]

(a) Select Committee
(b) Estimates Committee
(c) Prime Minister
(d) Public Accounts Committee

Correct Answer: (d) Public Accounts Committee

Solution:The representatives of the Ministries appear before the Public Accounts Committees when examining the Accounts and Audit Reports relating to their Ministries. The CAG is the Friend, Philosopher and Guide of the PAC. It attends the sitting of the PAC and assists it in its deliberations.

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