Hiring of CA firms for auditing autonomous bodies to strengthen audit process: Deputy CAG

New Delhi, Jun 12 (PTI) Deputy Comptroller and Auditor General (Commercial) Anand Mohan Bajaj on Thursday said hiring CA firms for auditing of central autonomous bodies will 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.

"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.

The co-option of CA firms will strengthen the auditing process, he said, audit responsibilities have gone up manifold and autonomous bodies have become very big.

For example, he said, the expenditure of AIIMS has increased to Rs 6,000 crore. The CAG had on May 27 invited ‘Expression of Willingness’ with a deadline of June 5 from CA firms to conduct financial audits of autonomous and local bodies for a period between July this year and March 2027.

He clarified, "CAG will not keep them as sole auditor but as a member of the audit team, which will be led by our officers. Therefore, this is not outsourcing and the accountability of the audit remains with us." The audit will be conducted by CAG and the report will be prepared by CAG, he added. Besides, he said, there will be confidentiality agreements signed with the empanelled firms.

CAG follows a very stringent process for empanelment of CA firms and only empanelled CA firms can do audit of government institutions like RBI, PSU banks or PSUs, he said, adding that over and above, CAG do supplementary audit. Once empanelled, he said, the CA firm would be attached to the office of the Accountant General.

In the first, Bajaj said, large central autonomous bodies, about 350, would qualify for such audits, and based on experience gained, the ambit can be expanded.

As per the document issued by CAG, CA firms empanelled with the Office of the CAG for the year 2024-25 are eligible to submit their ‘Expression of Willingness’ for their engagement to work with CAG team for audit of the financial statements of autonomous bodies, local and other bodies received for audit during July 25 to March 2027.

The CA firms having the point score of 15 and above in the empanelment process adopted by the CAG would be eligible to submit the willingness to deploy their personnel for the audit of financial statements of the Central Autonomous Bodies, State Autonomous Bodies, Local and Other Bodies which are mandated to be audited by the CAG of India, it said.

Over the last 2-3 years, CAG has become comfortable in terms of HR, Comptroller and Auditor General (HR) K S Subramanian said.

Against the sanctioned strength of 47,000 officers and staff, he said, CAG's headcount currently stands at 42,000. PTI DP DP SHW SHW