Laxmikanth MCQs: Comptroller and Auditor General of India | Indian Polity for UPSC CSE PDF Download

Q1: The tenure of the Comptroller and Auditor General (CAG) of India is:
(a) 5 years or until the age of 65
(b) 6 years or until the age of 65
(c) 7 years or until the age of 60
(d) 6 years or until the age of 62

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Ans: (b)
The CAG's tenure is for a period of six years or until they reach the age of 65 years, whichever is earlier.

Q2: Statement 1: The Comptroller and Auditor General of India (CAG) is appointed by the Prime Minister of India.
Statement 2: The CAG's term lasts for six years or until they reach 65 years of age, whichever comes first.
Statement 3: The removal process of the CAG requires a special majority resolution passed by both Houses of Parliament based on proven misbehavior or incapacity.
Statement 4: The CAG's salary and service conditions are determined by the President of India
(a) Only Statement 1 is true.
(b) Statements 2 and 3 are true.
(c) Statements 3 and 4 are true.
(d) Only Statement 2 is true.

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Ans: (b)

• Statement 1: Incorrect. The Comptroller and Auditor General (CAG) is appointed by the President of India, not the Prime Minister.
• Statement 2: Correct. The CAG's term lasts for six years or until they reach the age of 65 years, whichever comes first.
• Statement 3: Correct. The removal of the CAG requires a special majority in both Houses of Parliament and is based on proven misbehavior or incapacity, similar to the procedure for removing a Supreme Court judge.
• Statement 4: Incorrect. The salary and service conditions of the CAG are determined by Parliament, not solely by the President, and cannot be altered to their disadvantage during their term.

Q3: Assertion (A): The CAG cannot be removed from office at the President's discretion.
Reason (R): The CAG enjoys security of tenure, similar to that of a Supreme Court judge.
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true but R is NOT the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true

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Ans: (a)
Assertion (A): The Comptroller and Auditor General (CAG) cannot be removed from office at the President's discretion.

• This is true. The CAG can only be removed through a process similar to that of a Supreme Court judge, requiring a special majority in both Houses of Parliament on grounds of proven misbehavior or incapacity.

Reason (R): The CAG enjoys security of tenure, similar to that of a Supreme Court judge.

• This is true. The security of tenure ensures independence, preventing undue influence or arbitrary removal.

Since the CAG's security of tenure is the reason they cannot be removed at the President's discretion, R correctly explains A.

Q4: Statement 1: The CAG's role includes auditing of accounts related to the Consolidated Fund of India, state funds, and union territories with Legislative Assemblies.
Statement 2: The CAG has the authority to conduct secret service expenditure audits without approval from the relevant administrative authority.
Statement 3: The CAG's advisory role includes providing guidance to the Public Accounts Committee of Parliament.
(a) Only Statement 1 is true.
(b) Statements 2 and 3 are true.
(c) Statements 1 and 3 are true.
(d) Only Statement 2 is true.

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Ans: (c) 

• The CAG's role involves auditing various accounts, including those related to the Consolidated Fund of India.
• However, the CAG cannot conduct secret service expenditure audits without approval from the relevant administrative authority.
• The CAG also serves as a guide and advisor to the Public Accounts Committee of Parliament.

Q5: The Comptroller and Auditor General of India has the authority to audit:
(a) Only the accounts of the Central Government
(b) Accounts of both Central and State Governments
(c) Only the accounts of State Governments
(d) None of the above

View Answer  Ans: (b)
The CAG is responsible for auditing the accounts of both the Central and State Governments, including various bodies and authorities under them.

Q6: Assertion (A): The CAG is involved in the auditing process of government companies.
Reason (R): Government companies are audited by private auditors appointed by the CAG.
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true but R is NOT the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true

View Answer  Ans: (a)
The CAG audits government companies under Section 19 of the CAG (DPC) Act, 1971, and appoints statutory auditors under Section 139 of the Companies Act, 2013, who conduct primary audits, with the CAG performing supplementary or test audits.

Q7: Statement 1: The financial autonomy of the CAG's office ensures that administrative expenses are charged to the Consolidated Fund of India and are exempt from Parliament's vote.
Statement 2: The CAG's involvement in auditing government companies is extensive and includes conducting all audits independently.
Statement 3: The CAG's advisory role includes providing advice to the President on matters related to foreign policy.
(a) Only Statement 1 is true.
(b) Statements 1 and 2 are true.
(c) Statements 2 and 3 are true.
(d) Only Statement 3 is true.

View Answer  Ans: (a)
The financial autonomy of the CAG's office ensures that administrative expenses are charged to the Consolidated Fund of India. However, the CAG's involvement in auditing government companies is limited, and they may conduct supplementary or test audits as necessary. The advisory role does not extend to foreign policy matters.

Q8: The financial autonomy of the Comptroller and Auditor General of India is ensured by:
(a) Salaries and expenses being charged to the Consolidated Fund of India
(b) Direct funding from the World Bank
(c) Allocations made by the Ministry of Finance
(d) Donations from international organizations

View Answer  Ans: (a)
The CAG's financial autonomy is ensured as their office's administrative expenses are charged to the Consolidated Fund of India, exempt from Parliament's vote.

Q9: Assertion (A): The CAG's reports can sometimes be untimely, leading to delayed corrective actions.
Reason (R): The audit findings primarily rely on documents and files, lacking physical verification.
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true but R is NOT the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true

View Answer  Ans: (b)
While both statements are true, the reason for untimely reports is not solely due to the reliance on documents and files, but also due to the nature of the post-audit process.

Q10: Statement 1: Paul H Appleby advocated for the abolition of the CAG's office.
Statement 2: According to Appleby, the CAG's function in India largely originates from the post-independence era.
Statement 3: Appleby criticized the CAG's role, stating that auditors lack substantial knowledge about effective administration.
(a) Only Statement 1 is true.
(b) Statements 2 and 3 are true.
(c) Statements 1 and 3 are true.
(d) Only Statement 2 is true.

View Answer  Ans: (c)
Paul H Appleby did advocate for the abolition of the CAG's office and expressed criticism, stating that auditors lack substantial knowledge about effective administration.

Q11: The Comptroller and Auditor General (CAG) of India submits audit reports related to the Centre's accounts to:
(a) The Prime Minister
(b) The President
(c) The Finance Minister
(d) The Speaker of the Lok Sabha

View Answer  Ans: (b)
The CAG submits audit reports related to the Centre's accounts to the President, who then presents them before both Houses of Parliament.

Q12: Statement 1: The CAG's role in auditing public corporations is uniform, with all corporations undergoing total and direct audits.
Statement 2: The CAG's involvement in auditing government companies is similar to its role in auditing public corporations.
Statement 3: The 1971 Act defines the CAG's responsibilities, including the auditing of government companies.
(a) Only Statement 1 is true.
(b) Statements 2 and 3 are true.
(c) Statements 1 and 3 are true.
(d) Only Statement 2 is true.

View Answer  Ans: (b)
The CAG's role in auditing public corporations is not uniform, and it varies based on the type of relationship. The 1971 Act defines the CAG's responsibilities, including the auditing of government companies, but the CAG's involvement is limited.

Q13: Assertion (A): The CAG's role in auditing public corporations is restricted.
Reason (R): The CAG directly audits all public corporations.
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true but R is NOT the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true

View Answer  Ans: (c)
The CAG's role in auditing public corporations is indeed restricted, but they do not directly audit all public corporations.

Q14:  Which of the following statements about the CAG’s role is true?
​Statement 1: The CAG’s role in financial administration is primarily focused on auditing compliance and propriety.
Statement 2: The CAG’s reports are examined by the Public Accounts Committee before being presented to both Houses of Parliament.
Statement 3: The CAG’s role includes conducting mandatory legal and regulatory audits, along with discretionary propriety audits.
(a) Only Statement 1 is true.
(b) Statements 2 and 3 are true.
(c) Statements 1,2,3 are true.
(d) Only Statement 2 is true.

View Answer  Ans: (a)
The CAG’s role involves auditing financial compliance and propriety (Article 149, Section 13, CAG (DPC) Act, 1971), reports are examined by the PAC (Article 151), and the CAG conducts mandatory legal/regulatory audits and discretionary propriety audits (Section 13).

Q15: Once the Comptroller and Auditor General (CAG) of India ceases office, they:
(a) Can take up any governmental position
(b) Are ineligible for further office within the Government of India or any state
(c) Can become a member of Parliament
(d) Can serve as a judge in the Supreme Court

View Answer  Ans: (b)
After demitting office, the CAG is not eligible to hold any further office either in the Government of India or any state government.

Q16: Assertion (A): The CAG has complete autonomy in conducting audits of government departments.
Reason (R): The CAG requires executive government approval for the conduct rules of certain audits.
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true but R is NOT the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true

View Answer  Ans: (d)
The CAG does not have complete autonomy in conducting all audits as certain audits require executive government approval.

Q17: Which of the following statements about Paul H Appleby’s views on the CAG are true?
Statement 1: The Parliament and the Constitution haven’t properly defined the CAG’s functions, according to Paul H Appleby.
Statement 2: Appleby criticized the CAG for contributing to a widespread reluctance to make decisions and take action.
Statement 3: Appleby advocated for the CAG to take on advisory roles in financial administration.
(a) Only Statement 1 is true.
(b) Statements 2 and 3 are true.
(c) Statements 1 and 2 are true.
(d) Only Statement 2 is true.

View Answer  Ans: (c)
Appleby criticized the CAG’s functions as poorly defined and overly restrictive, contributing to administrative reluctance (Statements 1 and 2). He did not advocate for an advisory role in financial administration; he suggested abolishing the CAG’s office.

Q18: Which of the following statements about the CAG’s audit process and reports are true?
Statement 1: The CAG conducts physical verification for specific audits, such as performance audits, but not for all findings.
Statement 2: Delays in addressing pending Audit Paras reduce their significance and relevance.
Statement 3: The CAG’s reports are examined by the Public Accounts Committee before being presented to both Houses of Parliament.
(a) Only Statement 1 is true.
(b) Statements 2 and 3 are true.
(c) Statements 1 and 3 are true.
(d) Statements 1, 2, and 3 are true.

View Answer  Ans: (d)
The CAG conducts physical verification for specific audits (e.g., performance audits), delays in addressing Audit Paras reduce their impact, and reports are examined by the PAC before tabling in Parliament (Article 151, Section 20, CAG (DPC) Act, 1971).

Q19: Statement 1: The CAG's role includes auditing the accounts of government companies as per the provisions of the Companies Act.
Statement 2: According to Paul H Appleby, the CAG's role is crucial and properly defined by the Parliament and the Constitution.
Statement 3: The CAG's advisory role extends to providing guidance on the allocation of funds in foreign aid programs.
(a) Only Statement 1 is true.
(b) Statements 2 and 3 are true.
(c) Statements 1 and 3 are true.
(d) Only Statement 2 is true.

View Answer  Ans: (a)
The CAG's role includes auditing the accounts of government companies as per the provisions of the Companies Act. Paul H Appleby criticized the CAG's role and argued for its abolition, stating concerns about its functions.

Q20: Assertion (A): The Comptroller and Auditor General (CAG) of India plays a crucial role in ensuring the accountability of the executive to Parliament.
Reason (R): The CAG submits three different types of audit reports to the President for presentation to Parliament.
(a) Both A and R are true and R is the correct explanation of A
(b) Both A and R are true but R is NOT the correct explanation of A
(c) A is true but R is false
(d) A is false but R is true

View Answer  Ans: (a)
The CAG's role in submitting audit reports to the President, who then presents them before Parliament, is a key aspect of ensuring the accountability of the executive branch.