As per Article 149, CAG Act 1971 enacted by Parliament which describes the powers and duties.

  • audits receipts & expenditures from Consolidated Fund of India (CFI)
  • audits transactions related to Contingency Fund of India and public accounts
  • audits all govt companies and central PSU
  • audits all autonomous bodies and authorities receiving govt funds
  • audits accounts of any other authority at request of President
  • assesses net proceeds of taxes
  • acts as agent of parliament and conducts expenditure audit on their behalf
  • ensures accountability of exec to the legis in financial administration
  • checks on legality of funds shown in accounts and they have been disbursed properly for the specified purpose by specified body
    • also termed compliance audit