The Comptroller and Auditor General (CAG) of India will hold a conference with state finance secretaries on Friday to discuss issues related to the reporting framework for centrally sponsored schemes, state PSUs, good practices on public finances and leveraging IT systems for greater remote auditing.
Strengthening Central Scheme Audits
The top government auditor will soon launch the ‘CAG-Connect Portal’ to provide nearly 1 million auditee entities with a unified digital interface to directly respond to audit queries, observations, and inspection reports.
This platform will make the entire process transparent, technology-enabled, and accessible to all stakeholders regardless of their geographical location, enabling proper tracking of audit observations by both the CAG and audited entities while facilitating faster resolution, said deputy CAG K S Subramanian.
Deputy CAG A M Bajaj said the use of enterprise resource planning (ERP) systems in central and state public sector undertakings (PSUs) allows auditors now to access databases remotely, enhancing audit quality and efficiency.
The CAG occupies a unique position in the country’s public finance architecture, serving as a common link between the Union and the State Governments.
The conference with state finance secretaries, an annual feature now, will focus on key issues of strengthening the reporting framework with respect to Centrally Sponsored Schemes, dissemination of good practices on public finances, leveraging IT systems and digital platforms for better governance and strengthening auditing of State Public Sector Entities and Autonomous Bodies, said deputy CAG Jayant Sinha.
CAG’s chief technology officer B K Mohanty said the CAG envisions comprehensive digital transformation of the entire audit and accounts ecosystem through dedicated in-house Digital Transformation Officers.
Embracing AI and Remote Auditing
An initiative under development is the CAG-LLM (Large Language Model), designed to help auditors access decades of institutional knowledge, thereby improving efficiency and consistency in audit analysis. This AI-powered system will strengthen institutional capabilities in analysing large datasets and internally generated documents such as Inspection Reports, identify patterns and risks with enhanced accuracy, and assist auditors in preparing more incisive audit insights and comprehensive reports.
The CAG’s pilot studies of remote audits in many audit domains have been concluded, and they are now being replicated across offices. Remote audits in receipts audits are advancing faster due to higher automation, richer and standardized data. This includes a data-led GST audit carried out concurrently in the Central and State audit offices using a standardised audit design matrix and centrally validated SQL queries. Similarly, PAG (Audit) Telangana’s remote compliance audit of the Stamps & Registration Department demonstrates successful office-based scrutiny with real-time coordination.