The Secretary and Auditor (CAG) will use these tools for voucher verification and risk detection to expand remote and hybrid audits in complex revenue areas such as goods and services taxes, stamp duty and public works.
These technologies are expected to significantly reduce manual workloads, enhance anomaly detection, enable predictive identification of high-risk areas, and make audits more concentrated and data-driven.
Read again: GDP's dirty little secret: Why you should track GVA instead
CAG is restructuring audit practices to match the complexity of India's growing economy and vast governance structure. With over 700 central public sector units, 1,600 state businesses, 485 central autonomous organizations, and thousands of panchayats and urban local organizations currently under their jurisdiction, federal auditors are adapted not only to the size but also to the changing nature of public service delivery.
CAG conducts multi-state audits on key welfare and infrastructure areas, including solid management in urban organizations, construction workers welfare, district mineral funding management, implementation of rural employment guarantee programs, functioning regional transport offices, and Jal Jeevan Mission.
An all-India audit covering Green India Mission, Smart City, MSME Support and Skill Development is also underway and is expected to be completed by mid-2025. These audits aim to assess that these national initiatives provide measurable benefits to citizens and improve their lives.
For the first time, CAG institutionalized stakeholder consultations at every stage of the audit cycle, according to Bajaj.
“We have mandated consultations with secretaries, senior officials, academia and civil society while completing our annual audit plan and audit report. This comprehensive process ensures that our audits are based on real issues and bring meaningful value to both the institution and the citizens,” added Subramanian.
Read again: As the AI chatbot says, you are absolutely right
“We are a great place to go,” said Dattesh Parulekar, assistant professor of international relations at the University of Goa.
Focus on training
Training remains at the heart of this improvement. CAG has signed eight memorandums of understanding with institutions such as the Madras Institute of Technology, the Indian Institute of Management, the Baskaracharya National Institute of Space Applications and Geo-Languages, and the National Association of Urban Associations, which jointly develops specialized curricula.
“For capacity building, we train AI audit staff, data analytics, cybersecurity and public policy at top labs, including AI national boot camps and machine learning for audits in IIT Delhi,” Bajaj said.
According to Subramanian, the nine-month AI and cybersecurity diploma program is already underway at IIT-Madras for CAG executives, with a module in which environmental audits, ESG reporting, procurement and non-cognitive skills are being run in parallel.
Read again: 1.5 krull, spend on family and donate at temples”>Bengaluru Shocker: Driver flees with employer £1.5 crores, spend on family and donate at temples
The CAG will submit an audit report to the President or Governor, and then submitted to the Legislature or state legislature. Historically, these reports have played a key role in ensuring financial accountability and transparency in governance and identifying issues ranging from irregular spending to poor implementation of issues to systematic inefficiency. These audits led to policy reform, public discussion and accountability at the highest levels.
