The Comptroller and Auditor General of India (CAG) is the apex authority responsible for external and internal audits of the expenses of the National and state governments. The CAG is also the statutory auditor of government-owned corporations and conducts supplementary audits of government companies in which the government has an equity share of at least 51 percent or subsidiary companies of existing government companies. The CAG derives its audit mandate from different sources, including the Comptroller and Auditor General of India (Duties, Powers and Conditions of Service) Act, 1971. The CAG audits the accounts related to all expenditure from the Consolidated Fund of India, Consolidated Fund of each state and UT’s having a legislative assembly. The CAG also audits the books of accounts of government companies as per the Companies Act. The primary task of the CAG is to audit all expenditure incurred from the revenue of the union and the states. The audit by the CAG is not an administrative but a financial audit, which ensures that the accounts presented by the concerns give a complete and true picture of the various financial aspects of the concerns. The CAG is a constitutional authority whose function is to go into the economy, effectiveness, and efficiency of the use of resources by the government.