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With reference to the Comptroller and Auditor General of India, consider the following statements:
1. The CAG is an agent of the President and conducts audit of expenditure on behalf of the President.
2. CAG submits his audit reports relating to the center to the Parliament.
3. The secret service expenditure is audited by such auditors who are appointed by the Government on the advice of CAG.
4. CAG does not audit the Reserve Bank of India.
Which of the statement(s) given above is/are incorrect?
1 and 4 only
1 and 3 only
2, 3 and 4 only
1, 2 and 3 only
Explanation: The role of CAG is to uphold the Constitution of India and the laws of Parliament in the field of financial administration. To secure accountability of the executive to the Parliament in the sphere of financial administration, CAG conducts audit of expenditure on behalf of the Parliament. He is an agent of the Parliament and is responsible only to the Parliament. Hence, statement 1 is incorrect. The CAG submits his audit reports relating to the accounts of centre to President, who places them before both the houses of Parliament. Hence, statement 2 is incorrect. Public Accounts Committee then examines the annual audit reports of CAG, and in the fulfillment of this function it is assisted by the CAG. The secret service expenditure is a limitation on the auditing role of the CAG. CAG cannot call for particulars of expenditure incurred by the executive agencies but has to accept a certificate from the competent administrative authority that the expenditure has been so incurred under his authority. Advice of CAG is required in the appointment of private auditors for government companies. Hence, statement 3 is incorrect. CAG does not audit the RBI, whose auditors are appointed by Central government according to the provisions of RBI Act. Hence, statement 4 is correct.
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