Audit plays catalytic role in promoting efficiency, effectiveness: CAG

New Delhi [India], March 15 : The Comptroller and Auditor General of India on Friday highlighted the importance of auditing that promotes efficiency and effectiveness, credible assurance on transparency, reliability, compliance to laws/rules and overall achievements of government entities.
"The objectives of the audit are not merely to find out the deviations, non-compliance and fault finding in lawful decision-making but it plays a catalytic role in promoting efficiency and effectiveness, said Comptroller and Auditor General of India, Girish Chandra Murmu while speaking at SRCC Business Conclave here on Friday.
The primary function of the CAG is to audit the financial transactions of the government at all levels - Union, State, and local bodies. This includes scrutinising government revenues, expenditures, loans, grants, and other financial activities.
"Different types of audits are taken up against the extant policies, rules, and standards already prevalent at the time of audit. We inspect and examine records and the audit reports thereon are based on evidence," he added.
Auditing plays a crucial role in promoting good governance, preventing corruption, and instilling confidence in public administration.
"The role of CAG assumes significance because of our federal multi-party democracy, wherein both the Union and State Governments are responsible for the formulation and implementation of a large number of schemes involving substantial public resources," he further stated.
Murmu stated that accountability, transparency, efficiency and effectiveness are assertions that are tested in audits.
"Such independent checks on the functioning of the government provide credibility to the executive and confidence to the public at large. Securing accountability of the government protects its fiscal stability and its image globally," he said.
The CAG further said although accountability does not start and end with an audit, it emphasizes the need to take responsibility for healthy governance.
Different types of audits promote a pervasive sense of accountability, prompt course correction, optimal use of resources, efficient and effective implementation of plans, projects and programmes, etc. thereby complementing the administration and good governance.
Stating that these principles are not exclusive to public functionaries, Murmu said that practising financial discipline is essential to those in the private sector and also in their daily lives.
"Businesses that keep an eye on both the top and bottom lines are often successful in meeting their obligations to all stakeholders. On the other hand, there have been several cases where the readiness of easy capital led to wasteful expenditure, losing sight of the target and eventual collapse of businesses," CAG stated.
He suggested keeping in mind your social responsibility, which extends beyond simply paying taxes.
"While profit maximisation and wealth creation are rightfully the drivers of the private sector, as India enters its Amrit Kaal, you are in a position of great privilege. The country looks towards you to lead the way in economy, science, policy, research, etc. As the world hails India's demographic dividend, harnessing it will require more training, skilling and opportunities. You are the generation that will lead India for the next few decades, and I am sure your time in this prestigious institution will equip you with the tools that you will need to face the world," added Murmu.
Advising the students to make the most of the opportunities that are coming their way, the CAG said that they should think of how they can benefit the nation and how their work can help their fellow Indians.
"Today, India has the third-largest startup ecosystem in the world, and we need to continue this strong push. Job creators, instead of job seekers, are just as important," he concluded.