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
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.
Ans: (c)
The CAG is appointed by the President of India, and the removal process involves a special majority resolution passed by both Houses of Parliament. The salary and service conditions of the CAG are determined by Parliament, not the President.

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
Ans: (a)
The CAG can only be removed following the procedure outlined in the Constitution, ensuring their independence and security of tenure.

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.
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
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
Ans: (b)
While the CAG is involved in the auditing of government companies, these companies are audited by private auditors chosen by the Government, not necessarily appointed by the CAG.

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

Q14: Statement 1: The CAG's role in financial administration is primarily focused on decision-making and action implementation.
Statement 2: The CAG's reports are presented before both Houses of Parliament without examination by the Public Accounts Committee.
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 and 3 are true.
(d) Only Statement 2 is true.
Ans: (a)
The CAG's role is focused on upholding the Constitution of India and the laws of Parliament in financial administration. The CAG's reports are examined by the Public Accounts Committee before being presented before both Houses of Parliament. The CAG conducts mandatory legal and regulatory audits, and propriety audits are discretionary.

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

Q17: Statement 1: The Parliament and the Constitution haven't properly defined the CAG's functions, according to Paul H Appleby.
Statement 2: Appleby criticizes the CAG for contributing to a widespread reluctance to make decisions and take action.
Statement 3: The CAG's advisory role extends to providing guidance on foreign policy matters.
(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.
Ans: (b)
Paul H Appleby did criticize the CAG for contributing to a widespread reluctance to make decisions and take action. The advisory role of the CAG does not extend to foreign policy matters.

Q18: Statement 1: The CAG's role includes conducting physical verification for all audit findings.
Statement 2: According to challenges mentioned, delays in addressing pending Audit Paras reduce their significance and relevance.
Statement 3: The CAG's reports are presented before both Houses of Parliament without any examination by the Public Accounts Committee.
(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.
Ans: (b)
The CAG does not conduct physical verification for all audit findings, and challenges mentioned include delays in addressing pending Audit Paras. The CAG's reports are examined by the Public Accounts Committee before being presented before both Houses of Parliament.

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.
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
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.