CAG India

Key Concepts

15 Practice MCQs

1. Who audits the accounts of the Reserve Bank of India? A. RBI itself through internal audit
   B. CAG under the RBI Act
   C. A private auditor appointed by RBI Board
   D. SEBI
   Answer: B. CAG audits RBI under Sec. 17(2) of RBI Act—external statutory audit.
   Trick: “CAG audits money-maker” → RBI prints money → CAG audits it.
   Tag: Audit mandate

2. The CAG of India is appointed by: A. Prime Minister
   B. President
   C. Finance Minister
   D. Parliament
   Answer: B. Art. 148(1) – President under his hand & seal.
   Trick: “CAP” – CAG → Appointed → President.
   Tag: Appointment

3. CAG can be removed from office on the same grounds and manner as: A. Attorney-General for India
   B. Supreme Court Judge
   C. Governor
   D. UPSC Chairman
   Answer: B. Art. 148(2) – removal only by President on address of Parliament for proved misbehaviour/incapacity.
   Tag: Removal

4. Which of the following is NOT audited by CAG? A. Contingency Fund of India
   B. Public Accounts of States
   C. Municipal Corporation of Delhi
   D. Reliance Industries Limited
   Answer: D. RIL is a private company; CAG audits only govt. money.
   Trick: “CAG audits govt purse, not private purse.”
   Tag: Audit scope

5. The maximum tenure of CAG is: A. 5 years or 60 yrs
   B. 6 years or 65 yrs
   C. Till age 62 yrs
   D. Life tenure
   Answer: B. 6 years or 65 years, whichever earlier.
   Tag: Tenure

6. CAG submits Appropriation Accounts to: A. President
   B. Parliament
   C. Public Accounts Committee
   D. Finance Minister
   Answer: B. Reports are laid before Parliament; PAC only examines them.
   Tag: Reports

7. The first CAG of independent India was: A. V. Narahari Rao
   B. A. K. Chanda
   C. C. G. Somiah
   D. V. K. Shunglu
   Answer: A. V. Narahari Rao (1948-54).
   Trick: “First VNR – Very Nice Rao.”
   Tag: Firsts

8. CAG is an ex-officio member of which UN body? A. UNSC
   B. UN Board of Auditors
   C. ECOSOC
   D. IMF Board
   Answer: B. UN Board of Auditors (3 members).
   Tag: International

9. The concept of “Performance Audit” was introduced in India by: A. Morarji Desai
   B. CAG’s office in 1960s
   C. Planning Commission
   D. Administrative Reforms Commission
   Answer: B. CAG pioneered it in 1960s to judge economy, efficiency & effectiveness.
   Tag: Audit types

10. Which committee recommended that CAG should audit PPP projects? A. N. N. Vohra Committee
    B. Vinod Rai Committee
    C. Ashok Chawla Committee
    D. VK Shunglu Committee
    Answer: D. Shunglu Panel 2011 – on Commonwealth Games & PPP audit.
    Tag: Committees

11. CAG’s reports are examined by: A. Estimates Committee
    B. Public Accounts Committee
    C. Standing Committee on Finance
    D. Committee on Public Undertakings
    Answer: B. PAC at Centre & State levels.
    Tag: PAC

12. Which article deals with the duties & powers of CAG? A. Art. 149
    B. Art. 148
    C. Art. 150
    D. Art. 279
    Answer: A. Art. 149 – Parliament prescribes duties & powers.
    Tag: Articles

13. CAG audits the accounts of which of the following PSUs without any threshold? A. ONGC
    B. NTPC
    C. Both A & B
    D. None – threshold is 50% govt equity
    Answer: C. Govt holding any % → CAG can audit; no minimum equity bar.
    Tag: PSU audit

14. The CAG is not eligible for any further appointment: A. Under Government of India or any State
    B. In World Bank
    C. In UN
    D. In private sector
    Answer: A. Art. 148(4) – complete bar on govt jobs post-retirement.
    Tag: Post-retirement

15. Match: 1. Appropriation Accounts – P; 2. Finance Accounts – Q; 3. Compliance Audit – R P. Whether money spent as voted; Q. Complete financial position; R. Whether rules followed
    A. 1-P, 2-Q, 3-R
    B. 1-R, 2-P, 3-Q
    C. 1-Q, 2-R, 3-P
    D. 1-R, 2-Q, 3-P
    Answer: A. Classic trio – Appropriation = voted grants; Finance = overall accounts; Compliance = rule book.
    Tag: Reports matching

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