Audit plays catalytic role in promoting efficiency, effectiveness: CAG

Speaking at the SRCC Business Conclave in Delhi, the CAG said different types of audit are taken up against the extant policies, rules, and standards prevalent at the time of audit

Comptroller and Auditor General of India (CAG) Girish Chandra Murmu on Friday said that the objectives of the audit are not merely to find out the deviations, non-compliance and fault finding in lawful decision-making but to promote efficiency and effectiveness also.

Speaking at the SRCC Business Conclave here, the CAG said different types of audit are taken up against the extant policies, rules, and standards prevalent at the time of audit.

Murmu stated that accountability, transparency, efficiency and effectiveness are assertions that are tested in audit.

Such independent checks on the functioning of the government provide credibility to the executive and confidence to the public at large, he said, and added securing accountability of the government protects its fiscal stability and its image globally.

"Although accountability does not start and end with audit, it emphasises the need to fix responsibility for healthy governance. Different types of audits, as mentioned, promote pervasive sense of accountability, prompt course correction, optimal use of resources, efficient and effective implementation of plans, projects and programmes, etc. thereby it complements the administration and good governance," he said.

At this juncture, Murmu said he would again note that these principles are not exclusive to public functionaries. Practising financial discipline is essential to those in the private sector and also in our own 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," the CAG added.

Murmu further stated that while profit maximisation and wealth creations are rightfully the drivers of the private sector, "my only suggestion to all of you is to also keep in mind your social responsibility, which extends beyond simply paying taxes"..

Advising the students to make the most of the opportunities that are coming their way, the CAG said that they shouldthink of how they can benefit the nation and how their work can help the fellow Indians.