The Comptroller and Auditor General of India (CAG) has decided to set up a separate unit for auditing of about 1,600 public sector undertakings (PSUs) run by various state governments for faster auditing and achieving greater efficiency.
“Very recently, a separate vertical has been created. An order has been issued. Once this vertical comes up, one location will have positions for auditing only state PSUs of a particular state,” said Deputy CAG, K S Subramanian (Human Resources, International Relations, Coordination and Legal).
This is similar to the Central Public Sector Enterprises which are audited by a separate vertical, Subramanian added.
Currently, state PSUs are audited by members of senior management who have to do auditing of 4-5 states rather than one particular region, the Deputy CAG said, adding, that it understandably takes time.
A separate vertical would therefore help in consolidation of information of all state PSUs, and it will be easy for stakeholders to compare, Deputy CAG Anand Mohan Bajaj (Commercial) said.
There are about 700 Central Public Sector Enterprises (CPSEs), 1,600 State Public Sector Enterprises (SPSEs), 485 Central Autonomous Bodies (CABs), and more than 700 State Autonomous Bodies in the country.
Riding on the back of digital transformation, the office of CAG is working on expanding the scope of remote auditing to enhance efficiency, transparency, and collaboration.
The planned integration of Generative AI and OCR in voucher verification reduces errors, boosts accuracy, and generates audit leads, while the Standardized Risk Assessment Model, powered by tools like IDEA and Tableau, ensures data-driven, risk-focused audit planning nationwide, Bajaj said.
“Our initial efforts at remote/hybrid audit of GST, stamp duty and registration and public works have been highly successful and encouraging. This has spurred us to fast-track such hybrid audits across the country by engaging with the executives to ensure that they achieve end-to-end digitisation of their work processes,” he said.
In fact, he said, this would be one of the important agenda items at the upcoming State Finance Secretaries Conference planned in September 2025.
Clarifying the issue of hiring of empanelled CA firms for auditing of central autonomous bodies, he said the move will not undermine the autonomy of apex audit body but strengthen the auditing process.
He said the office of CAG is in the process of hiring CA firms for 30 stations or cities, and the list would be finalised in the next two weeks for co-option with the CAG team for auditing of central autonomous bodies.
Anand insisted co-option of CA firms is aimed at strengthening the aduting process since autonomous bodies have become very big.
“We have been auditing every year (autonomous bodies), but need has been felt to augment our audit effort with expert professionals wherever required,” he said when asked for a reaction on a CPM MP objecting to hiring of CA firms claiming that it would dilute the independence of the CAG.
Madurai MP S Venkatesan (CPM) wrote a letter to President Droupadi Murmu on June 3 objecting to the CAG's move, claiming that it dilutes the independence of the CAG and principles envisaged by the Constitution.
Follow us
