Local audit push: CAG flags capacity gaps, calls for stronger PAIs and tech-led audits

The Comptroller and Auditor General of India has called for strengthening the institutional framework, professional capacity building and audit practices of primary auditing institutions (PAIs) responsible for local governments, highlighting the need to improve audit quality and transparency at the grassroots level, PTI reported.The call came at the conclusion of a three-day national workshop for Directorates of Local Fund Audit (DLFAs) and state audit departments, organised by CIARD–NIRDPR in collaboration with iCAL, the CAG office said in a statement on Wednesday.Speaking at the valediction function, CAG Sanjay Murthy said the challenges and best practices highlighted by different states during the workshop would be taken up at the forthcoming All-State Secretaries’ Workshop for “appropriate follow-up and improvement of the system”.The workshop focused on strengthening PAIs, which play a key role in auditing local governments. Workshop Director U Hemantha Kumar said deliberations covered issues such as challenges in local fund audits, assessment of PAI maturity, the CAG’s Technical Guidance and Support (TGS) framework, and experience-sharing on audit planning, reporting and engagement with local bodies.Directors of Local Fund Audit from various states participated in five thematic group discussions, which examined PAI maturity levels, virtual audit systems, remote audits of gram panchayats, standardisation of inspection reports and audit planning, and ways to strengthen the TGS framework.According to the CAG statement, group presentations stressed the need for simplified and standardised audit frameworks, wider adoption of technology-enabled and remote audit systems, and stronger follow-up and enforcement mechanisms. Participants also underlined the importance of focused capacity building of DLFAs to enhance audit coverage, improve audit quality and increase transparency in local governance.The workshop concluded with a consensus that upgrading institutional capacity and modernising audit practices are essential to ensure effective oversight of local bodies and better utilisation of public funds.