State of the Audit: CAG’s New Vertical Takes 1,600 PSUs to Task

The Comptroller and Auditor General of India (CAG) has created a dedicated vertical for auditing around 1,600 state-owned public sector undertakings or PSUs to speed up and make audits in the country more effective. The step replicates the setup already in place for Central Public Sector Enterprises and will enable consolidation and comparison of audit data for stakeholders.

 

Key Highlights:

 

•⁠  ⁠The new vertical will solely deal with auditing state PSUs of specific states, contrary to the present system in which senior management audits several states, delaying the process.

 

•⁠  ⁠This restructuring proposes to allow audits to be accelerated, enhance operational effectiveness, and allow comparison of PSU performance state-by-state. CAG is also harnessing digitalization, such as remote auditing, Generative AI, and OCR technology, to minimize errors and increase transparency in voucher verification and audit planning.

 

•⁠  ⁠A Standardized Risk Assessment Model, using advanced analytics tools, will ensure data-driven and risk-focused audit strategies nationwide.

 

Outlook:

 

With this expert group, the CAG is seeking to provide earlier, exact, and clear auditing of state PSUs that will lead to improved governance and accountability within India's public sector. The stakeholders can look forward to greater access to consolidated information and better monitoring of government-owned enterprises. 

 

Source: Outlook Business, Economic Times, Business Standard