Q. Consider the following statements regarding the role of the Comptroller and Auditor General (CAG) in auditing public corporations and government companies:
1.The audit of the Reserve Bank of India (RBI) is conducted by the CAG under Article 149 of the Constitution.
2.Government companies are mainly audited by private auditors, but the CAG can also do an additional audit if needed.
3.An Audit Board was established under the office of the CAG to handle technical audits of specialised enterprises.
Which of the statements given above is/are correct?
Answer: B
Notes:
Explanation:
- The RBI is not audited by the CAG. It falls into the category of public corporations that are audited exclusively by private auditors, and the CAG does not have a role in their audit.
- Government companies are audited by private auditors, but the CAG may conduct supplementary or test audits, as stated.
- The Audit Board was created in 1968 within the office of the CAG on the recommendation of the Administrative Reforms Commission to assist in technical audits of specialized sectors like iron, steel, engineering, etc.
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