Correct option is A
Indian Audit, under the Comptroller and Auditor General (CAG), primarily conducts legality audits, which means ensuring that the financial transactions of the government conform to the legal framework. It checks whether the government expenditures are in line with the approved laws and regulations. It also includes propriety audit (whether government funds have been used efficiently and for the intended purpose).
Indian Audit is governed by the Constitution and laws, specifically the Comptroller and Auditor General’s (Duties, Powers and Conditions of Service) Act, 1971.
Indian Audit is not limited to the expenditure side only. The CAG audits both revenue and expenditure sides of government finances. The audit also covers receipts, such as taxes, and checkswhether they are being collected properly and credited to the government accounts.
