Question

Q. Consider the following statements about Comptroller and Auditor General of India (CAG):

Which of the following statement is/are correct?

• A. 1 only
• B. 1 and 2 only
• C. 2 only
• D. Neither 1 and 2

Answer 1

The correct option is D Neither 1 and 2

Explanation:

• Statement 1 is incorrect. In India, CAG does not audit the RBI and the auditors for the RBI are appointed by the Central Government under the provisions of the RBI Act 1934. However, the CAG conducts audits of other financial sector regulators like SEBI, IRDA, and PFRDA but does not conduct performance audits of these regulators as well.
• Statement 2 is incorrect. The CAG is authorized to carry the audits of UTs sans legislative assembly. The report for the UTs without legislature is presented to the Parliament with reports of Central Government finances. There is no separate consolidated fund for UTs without a legislature and their finances are being controlled through the operation of the Consolidated Fund of India, hence they are not subjected to any separate CAG audit.