The Crossbill Team
CPI(M) MP from Madurai, S. Venkatesan wrote to President Droupadi Murmu on June 3, expressing strong opposition to the Comptroller and Auditor General’s (CAG) recent decision to empanel Chartered Accountants (CAs) for auditing autonomous and local bodies.
Venkatesan, along with the officers’ association of the Indian Audit and Accounts Department (IAAD), raised serious concerns about what they described as a “dangerous” and “unconstitutional” move, Deccan Herald reported.
On May 27, the CAG had invited ‘Expressions of Willingness’ from CA firms to conduct financial audits of autonomous and local bodies for the period between July 2024 and March 2027.
While CA firms are currently empanelled to audit public sector undertakings under the Companies Act, this is the first time they are being considered for auditing local bodies — a task traditionally undertaken by IAAD officers.
In his letter, Venkatesan warned that outsourcing audit responsibilities to private firms could undermine the independence of the CAG, weaken constitutional oversight, and risk the leakage of sensitive financial information into private hands.
Venkatesan stated that the officers of CAG are the guardians of the financial interests of the Indian people.
Echoing these concerns, the All India Audit and Accounts Officers’ Association (AIAAOA) also raised strong objections.
In a letter to CAG K. Sanjay Murthy, AIAAOA Secretary General O.S. Sudhakaran called the decision “highly inappropriate” and said it undermined the spirit of the CAG’s constitutional mandate.
He described the move as an “act of adhocism” and warned that the engagement of CAs on contract could lead to manipulation or misuse of sensitive data, given the temporary nature of such engagements.
Sudhakaran emphasized that IAAD officials, unlike private CAs and articled clerks, function as constitutional authorities with deep institutional knowledge and understanding of the workings of local and autonomous bodies.
“The officials of IAAD visit the auditee units as constitutional authorities and their understanding of the working of Autonomous Bodies/Local Bodies, the regulations that govern them, etc., is unparalleled, which no Chartered Accountant or their articled clerks can ever hope to have. The Chartered Accountants and Articled clerks proposed to be engaged are contract workers having no such constitutional obligations,” the letter stated.
The move comes at a time when the CAG’s office is reportedly facing an acute manpower shortage.
The newspaper reported, citing sources that the decision may have been spurred by mounting pressure from a parliamentary panel over delays in auditing local bodies, many of which receive substantial funds from both Union and state governments.
Critics argue that instead of strengthening the IAAD workforce, the attempt to involve private audit firms risks undermining a vital pillar of public financial accountability.
Venkatesan, along with the officers’ association of the Indian Audit and Accounts Department (IAAD), raised serious concerns about what they described as a “dangerous” and “unconstitutional” move, Deccan Herald reported.
On May 27, the CAG had invited ‘Expressions of Willingness’ from CA firms to conduct financial audits of autonomous and local bodies for the period between July 2024 and March 2027.
While CA firms are currently empanelled to audit public sector undertakings under the Companies Act, this is the first time they are being considered for auditing local bodies — a task traditionally undertaken by IAAD officers.
In his letter, Venkatesan warned that outsourcing audit responsibilities to private firms could undermine the independence of the CAG, weaken constitutional oversight, and risk the leakage of sensitive financial information into private hands.
Venkatesan stated that the officers of CAG are the guardians of the financial interests of the Indian people.
Echoing these concerns, the All India Audit and Accounts Officers’ Association (AIAAOA) also raised strong objections.
In a letter to CAG K. Sanjay Murthy, AIAAOA Secretary General O.S. Sudhakaran called the decision “highly inappropriate” and said it undermined the spirit of the CAG’s constitutional mandate.
He described the move as an “act of adhocism” and warned that the engagement of CAs on contract could lead to manipulation or misuse of sensitive data, given the temporary nature of such engagements.
Sudhakaran emphasized that IAAD officials, unlike private CAs and articled clerks, function as constitutional authorities with deep institutional knowledge and understanding of the workings of local and autonomous bodies.
“The officials of IAAD visit the auditee units as constitutional authorities and their understanding of the working of Autonomous Bodies/Local Bodies, the regulations that govern them, etc., is unparalleled, which no Chartered Accountant or their articled clerks can ever hope to have. The Chartered Accountants and Articled clerks proposed to be engaged are contract workers having no such constitutional obligations,” the letter stated.
The move comes at a time when the CAG’s office is reportedly facing an acute manpower shortage.
The newspaper reported, citing sources that the decision may have been spurred by mounting pressure from a parliamentary panel over delays in auditing local bodies, many of which receive substantial funds from both Union and state governments.
Critics argue that instead of strengthening the IAAD workforce, the attempt to involve private audit firms risks undermining a vital pillar of public financial accountability.
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