The Comptroller and Auditor General (CAG) is planning to set up a Centre of Excellence for financial audit in Hyderabad and transition towards data-informed and AI-enabled auditing, A M Bajaj, Deputy CAG, said on Wednesday.
Envisioned as a national hub for innovation and professional development, the Centre will spearhead research, standardise best-in-class financial audit practices, and nurture advanced skills, reinforcing the CAG’s role as the nation’s supreme audit institution, Bajaj said, stating the outcomes of the 32nd Accountants General Conference here.
This institutional investment signals a strong commitment to strengthening fiscal trust, deepening transparency, and setting global benchmarks in financial auditing, he said.
CAG pushes research awards scheme
Complementing this push towards specialisation, the CAG announced a new research awards scheme in partnership with the Indian Council of Social Science Research (ICSSR). The initiative aims to promote cutting-edge research in public finance and accountability across four thematic areas, enriching the theoretical and practical foundation of public-sector auditing. By encouraging academic collaboration, the CAG seeks to expand the knowledge ecosystem that shapes modern audit frameworks.
A major strategic shift emphasised at the conference was the transition towards data-informed and AI-enabled auditing.
The CAG leadership has directed audit and accounts wings to break existing silos and unlock the full value of the granular data held in Accounts Offices—voucher-level entries, sanctions, challans, and more. This marks a paradigm shift from traditional sample-based audits to holistic, full-dataset analytics.
Introduction of CAG-LLM
Driving this transformation is the development of the CAG-LLM, an indigenous Large Language Model, alongside several pioneering AI-based audit applications.
The vision is not limited to automation; it extends to generating predictive insights, detecting anomalies, and conducting sharper risk assessments.
By marrying deep data integration with AI-driven intelligence, the CAG is positioning itself to deliver more focused, evidence-based audits with significantly greater impact, Bajaj said.
The conference also reaffirmed its commitment to India’s national priorities. The integration of ESG criteria reflects a broader focus on sustainability, while upcoming audits will prioritise citizen-centric themes such as Ease of Living, Ease of Doing Business, and Foundational Literacy and Numeracy (FLN).
The CAG is also developing a comprehensive assessment matrix for Autonomous Bodies to strengthen oversight and institutional capacity.