Which of the following statements is/are correct regarding the Comptroller and Auditor General (CAG) and financial accountability in India?
1. The CAG's Compliance Audit examines whether rules and procedures, such as the General Financial Rules (GFR), are being followed by government entities.
2. Utilization Certificates (UCs) are documents submitted by the CAG to the Public Accounts Committee to certify the legality of government expenditures.

Question

Accepted Answer

1 only — Statement 1 is correct as compliance audits ensure adherence to rules like the GFR. Statement 2 is incorrect because Utilization Certificates are submitted by ministries or grantees to the sanctioning authority to prove funds were spent for the intended purpose, not by the CAG.

CAG Compliance Audit on Union Government

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