A Conference to Strengthen State and Central Ties
The Comptroller and Auditor General of India is set to hold a major conference with state finance secretaries to address the future of financial reporting and auditing across India. The discussions will revolve around centrally sponsored schemes, the performance of state public sector undertakings, the adoption of digital technologies, and the sharing of good practices in public finance. The aim is to improve accountability and efficiency at both Union and State levels.
Launch of CAG Connect Portal
One of the highlights of this initiative is the soon to be launched CAG Connect Portal. This platform will provide nearly one million auditee entities with a single digital interface to respond to audit queries, observations, and inspection reports. By digitising this process, both the CAG and the audited bodies will be able to track audit issues in real time, ensuring faster resolution and greater transparency.
Deputy CAG K S Subramanian explained that this shift will ensure accessibility for all stakeholders regardless of their location, helping eliminate delays and bottlenecks.
The Role of Technology in Auditing
Public sector enterprises are increasingly using enterprise resource planning systems, making it possible for auditors to access databases remotely. This marks a step change in how audits are carried out, with deputy CAG A M Bajaj highlighting that it strengthens quality and improves overall efficiency.
The CAG’s chief technology officer B K Mohanty also revealed that a dedicated team of digital transformation officers has been appointed to oversee a comprehensive digital shift across the audit and accounts ecosystem.
Embracing AI with CAG LLM
A key innovation in the pipeline is CAG LLM, a large language model tailored for the auditor’s work. This AI system is being designed to help auditors tap into decades of institutional knowledge, improving consistency in audit analysis and enabling sharper insights. By scanning large datasets and internal documents such as inspection reports, the system can detect risks, identify patterns, and support auditors in drafting more accurate and incisive reports.
Remote Audits Take Shape
Pilot projects for remote audits have already been completed and are now being scaled across offices. Data driven GST audits, conducted concurrently by central and state teams using standardised audit designs and centrally validated SQL queries, have shown how automation can boost accuracy. Similarly, compliance audits such as the one undertaken by the Telangana Stamps and Registration Department have proven that remote audits can deliver real time scrutiny and coordination.
The Road Ahead
The CAG’s vision is clear: to use digital tools and artificial intelligence to transform how India manages its financial accountability. By merging technology with traditional audit practices, the institution is positioning itself as a future ready guardian of public finance.
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