The Comptroller and Auditor General (CAG) serves as India's supreme audit institution, functioning as the constitutional guardian of public finances and ensuring transparency in governance.

Comptroller and Auditor General Structural Framework

Method and Terms of Appointment

• Constitutional Foundation: Under Article 148, CAG is appointed by the President of India through a warrant, ensuring constitutional legitimacy and independence from executive control
• Security of Tenure: Can only be removed through impeachment process similar to Supreme Court judges (proven misbehavior or incapacity), guaranteeing operational autonomy
• Fixed Term: Serves for 6 years or until age 65, whichever is earlier, providing stability and continuity in audit functions
• Salary Protection: Salary and service conditions cannot be varied to his disadvantage during tenure, ensuring financial independence
• Post-Retirement Bar: Cannot hold any office of profit under Government of India or states after retirement, preventing conflict of interest

Range of Powers Exercised

Audit Authority

• Comprehensive Coverage: Audits all receipts and expenditures from Consolidated Fund of India and States, Contingency Fund, and Public Account
• Corporate Oversight: Reviews government companies, corporations, and autonomous bodies receiving substantial government funding
• Performance Audit: Examines efficiency, effectiveness, and economy in government operations beyond mere compliance audit

Investigative Powers

• Access Rights: Authority to access any books, accounts, documents, and records related to public expenditure
• Information Demand: Can summon officials and demand explanations regarding financial irregularities or procedural lapses
• Field Inspection: Powers to conduct surprise inspections and on-site verification of government projects and schemes

Reporting Mechanism

• Parliamentary Reports: Submits audit reports to President/Governor, who present them to Parliament/State Legislature for scrutiny
• PAC Collaboration: Works closely with Public Accounts Committee for detailed examination and follow-up on audit observations
• Public Disclosure: Recent CAG reports exposed ₹12,900 crore revenue loss in coal block allocations and irregularities in Rafale deal procurement

The CAG's constitutional status, secured tenure, and extensive audit powers collectively establish it as a vital institution for financial accountability, reinforcing parliamentary democracy through effective oversight of executive's fiscal operations.