Hiring CA Firms to Strengthen Audit Process for Central Autonomous Bodies, Says Deputy CAG

Anand Mohan Bajaj, Deputy Comptroller and Auditor General Commercial, stated that hiring Chartered Accountant (CA) firms for auditing central autonomous bodies will enhance the audit process. The CAG office plans to hire CA firms for 30 locations, with the list to be finalised in two weeks. These firms will work alongside the CAG team to audit central autonomous bodies.

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When asked about objections from a CPM MP regarding this move, Bajaj explained that the inclusion of CA firms will not compromise the independence of the CAG. He emphasised that the audit responsibilities have increased significantly, necessitating expert assistance. For instance, AIIMS's expenditure has risen to Rs 6,000 crore.

Strengthening Audit Processes

The CAG invited 'Expression of Willingness' from CA firms by June 5 for financial audits between July 2023 and March 2027. Bajaj clarified that these firms will not act as sole auditors but as part of an audit team led by CAG officers. This ensures accountability remains with the CAG.

Madurai MP S Venkatesan of CPM had written to President Droupadi Murmu on June 3, objecting to this initiative. He claimed it undermines the CAG's independence and constitutional principles. However, Bajaj reiterated that co-opting CA firms would bolster the auditing process.

Empanelment and Confidentiality

Bajaj assured that confidentiality agreements would be signed with empanelled firms. The CAG follows a strict process for empanelment, allowing only qualified CA firms to audit government institutions like RBI and PSUs. Once empanelled, these firms will be attached to the Accountant General's office.

Initially, around 350 large central autonomous bodies will qualify for such audits. Based on experience gained, this scope may expand. The document issued by CAG states that CA firms empanelled for 2024-25 can submit their 'Expression of Willingness' for audits from July 2025 to March 2027.

Eligibility and Expansion

CA firms scoring 15 or above in the CAG's empanelment process can deploy personnel for auditing financial statements of various bodies mandated by the CAG of India. Over recent years, CAG has improved its human resources situation.

K S Subramanian, Comptroller and Auditor General HR, mentioned that against a sanctioned strength of 47,000 officers and staff, the current headcount is at 42,000. This indicates a comfortable HR position for handling increased audit responsibilities.

With inputs from PTI