1. CAG’s (DPC) Act, 1971 Introductory- Provisions of Art. 149& 151 Of the Constitution of India deal with Functions of CAG. Up to 1971 CAG continued to perform functions as per Constitution and India (Audit and Accounts ) Order, 1936.

2. CAG’s Duties I ) Compilation and keeping of accounts and audit Provisions relating to Sns. 13 to 20, 23 & 24 pertain to AUDIT Sn 13. of the Act relates to audit of all expenditure out of Consolidated Fund of India, all States and UTI

3. Audit Of Expenditure includes -Audit against provision of Funds -Regularity Audit -Propriety Audit -Performance audit as per the new Performance Audit guidelines

4. DPC Act Cont.. Audit Report contains the totality of the accounts. There fore, audit of not only expenditure but also receipts shall be included Sn. 16 deals with the audit of receipts of Union, states

5. DPC Act Cont... Sn. 17 deals with audit of transactions of Stores and Stock of Department of Union and States,UTI.

6. DPC ACT Cont... Sn. 14 deals with audit of grants / Loans The loan or grant should be from Consolidated fund of India or States, UTI

7. DPC Act Cont…. Sn.15 -Audit of grants or loans given for any specific purpose from the consolidated fund to any body or authority not being a foreign body CAG to satisfy that the loan or grant given satisfies the conditions attached to the granting of such assistance

8. Audit of Govt. Companies Sn. 19 of the Act prescribes the details of Audit of Govt. Companies. Govt Company is defined in Sn. 617 of The Companies Act, 1956. Sn.619(2) of the Companies Act- Appointment of auditors of Govt. Companies

9. Audit of Govt. Companies Cont... Sn. 619(3) - CAG shall direct the manner in which account shall be audited Sn. 619(4) - CAG has power to comment upon or supplement the audit report of CAs Sn. 619(5)- CAG’S comments shall be placed before the AGM at the same time and in the same manner.

10. Audit of Statutory Corporations 1. Established by Parliament CAG shall audit the accounts of such corporations in accordance with the provisions contained in their Acts.

11. Estblished by States Sn. 19(3) of DPC Act enables the States to request the CAG to audit their accounts Only Parliament has the power to direct CAG to audit the accounts. Others have to request

12. Sn.20 of DPC Act Deals with audit of accounts of certain bodies or authorities not covered in earlier sections. Govt. shall consult the CAG for undertaking the audit. Terms and conditions shall also be settled between Govt. and CAG.

13. Cont... Section 16- It shall be the duty of CAG to Audit not only the expenditure but the receipts also. Section 16 deals with the audit of receipts. It specifies that the executive has to make safeguards to assess, collect and remit the revenues of the Union and the states

14. Cont... Section 17- CAG shall have authority to audit the accounts of Stores and stock of the Union and of the States. This is dealt with in Section 17 of the CAG’s DPC Act.

15. Cont…. Section 18- CAG shall have authority to inspect any Office of accounts under the control of union or State. For this, books and records can be called for where he wants. Any information can be called for by him or his representatives.

16. Cont... Miscellaneous Sections- CAG can delegate power to exercise his power by subordinates except the power of submission of CAG’s Report to the Parliament or State Legislature. Section 21

17. Cont... Section 22 Central Govt. in consultation with the CAG may make rules for maintaining the accounts

18. Cont... CAG can make regulations for carrying for audit of expenditure and receipts. He can decide about the extent and scope of audit. Section 23

19. Cont... Section 24 CAG can dispense with any part of detailed audit of any accounts or class of transactions and to apply such limited checks as he may deem fit.