Tag: CAG

CAG Collaborates with IIT Madras to Enhance Audit Skills and Sustainability

CAG of India Signs MoUs with IIT Madras for Enhanced Auditing and Research

On February 24, 2025, the Comptroller and Auditor General (CAG) of India, Sanjay K. Murthy, signed two Memoranda of Understanding (MoUs) with the Indian Institute of Technology Madras (IIT Madras). This collaboration is set to focus on critical areas including data security and governance, as well as Artificial Intelligence-driven capacity building and research in environmental audits and the environmental, social, and governance (ESG) framework.

During the Dr. Bhimrao Ambedkar lecture series held at the CAG’s office, IIT Madras Director V. Kamakoti discussed the potential for collaboration between IIT Madras and the CAG, emphasizing the importance of digital technology in enhancing audit processes. CAG Murthy highlighted the transformative effect of digital trails in audits and underscored the necessity for capacity building to ensure effectiveness and efficiency in job roles.

The first MoU aims to address essential fields such as cyber security and the updating of manuals and protocol systems. It seeks to develop guidance on auditing entities that increasingly rely on digital data. In the next five years, we need to ensure that I have a set of protocols. I do all this ground work that it becomes automatic when I reach out to an institution to do an audit, what is this being asked for? What do they need to prepare themselves for? This is one big expectation that we have from this MoU,” said CAG Murthy.

Additionally, the engagement focuses on sustainable auditing. “IIT Madras has a fantastic sustainable IIT school functioning in that premises. There is a lot of work going on, and we are talking about SDGs. I think we need to build our capacities to deliver good, meaningful audits for those entities,” he added.

The objective of the MoUs is to establish a strategic collaboration between the CAG and IIT Madras to foster innovation, enhance data analysis capabilities, and contribute to technology-driven governance practices. The key focus areas include data governance and security, big data and digital infrastructure readiness, academic and research collaboration, advanced auditing practices, and joint research and development initiatives.

Furthermore, the second MoU signed between IIT Madras and the International Centre for Environment Audit and Sustainable Development (iCED), Jaipur, aims to collaborate on capacity building and research in environmental audit and ESG. This partnership will leverage Artificial Intelligence, machine learning, and other technological advancements to improve the effectiveness of auditing in these areas.

Empanelment of Chartered Accountant firms/LLPs for the year 2025-2026

Online applications are invited from Chartered Accountant firms/LLPs interested in being empanelled with the office of the Comptroller and Auditor General of India for the year 2025-2026. This empanelment is for the consideration of appointment as auditors for Companies as per Sections 139(5) and 139(7) of the Companies Act 2013, as well as for Statutory Corporations and Autonomous Bodies as outlined in their respective Acts.

The online application form, along with detailed instructions, will be available on the website www.cag.gov.in from January 7, 2025, to February 17, 2025. Applicant firms/LLPs must fill or update their data reflecting the status of their firm as of January 1, 2025. Once the data is filled or updated, firms/LLPs must generate an online acknowledgment letter for the year. Failure to generate this online acknowledgment letter will result in the application not being considered for empanelment.

Additionally, firms/LLPs are required to submit a printed copy of the acknowledgment letter generated online, along with hard copies of supporting documents related to their online application, to this office by February 28, 2025.

Sr. Administrative Officer/CA-V

BIG BREAKING! Is NFRA helping to further stenthen the monopoly of Big4 in India ?

There are concerns that the National Financial Reporting Authority (NFRA) may be strengthening the monopoly of the Big 4 accounting firms in India. A source within the Institute of Chartered Accountants of India (ICAI) indicated that the Forum of Firms, dominated by the Big 4, has established international norms that NFRA aims to implement in India. However, these new standards do not apply to Public Sector Undertakings (PSUs), Public Sector Banks (PSBs), and insurance companies. Consequently, key regulators like the RBI, CAG, and IRDA opposed the proposal, with only five out of eleven stakeholders supporting it. Nevertheless, NFRA intends to proceed with implementing these international standards. There are calls for the Prime Minister’s Office (PMO) to investigate why the RBI, CAG, and IRDA authorized standards that do not pertain to them and whether this undermines the vision of having ten major Indian accountancy firms.

CA Atul Modani

Improving Local Governance Through Effective Audit Mechanisms

The Comptroller and Auditor General of India (CAG), Girish Chandra Murmu, announced the establishment of the International Centre for Audit of Local Governance (iCAL) in Rajkot, Gujarat. This announcement came at the end of a three-day international conference on ‘Strengthening of Grass Roots Democracy and Accountability’.

Mr. Murmu emphasized the significant role of local governments in shaping the lives of citizens and stressed the importance of efficient accounting platforms and audit mechanisms to ensure the effective utilization of public resources for the community’s benefit.

He highlighted the challenges associated with auditing local governments, including their complex nature, diverse operations, budgetary constraints, and limited trained manpower. Mr. Murmu also pointed out the need for specialized expertise, rigorous audit methodologies, and effective communication between auditors and local government officials to address these challenges.

He underscored the necessity of building the capacity of auditors and local government employees, enhancing their understanding of financial management practices and internal controls, and establishing open communication channels to improve the audit process and cooperation in addressing audit findings.

Read more at: Audit process to be fully digitalised; details