Explanation:

Only statement 1st is correct.

Public Accounts Committee (PAC)

• It is one of the three Financial Parliamentary committees, the other two are the Estimates Committee and the Committee on Public Undertakings. 

• Parliamentary committees draw their authority from Article 105 (on privileges of Parliament members) and Article 118 (on Parliament’s authority to make rules for regulating its procedure and conduct of business).

• The Public Accounts Committee was introduced in 1921 after its first mention in the Government of India Act, 1919 also called Montford Reforms.

• The Public Accounts Committee is now constituted every year under Rule 308 of the Rules of Procedure and Conduct of Business in Lok Sabha.

Hence option 1st is correct.