CAG Sanjay Murthy launches centre to modernise financial audits with advanced tech

    Hyderabad, Nov 26 (PTI) CAG K Sanjay Murthy on Wednesday said a specific audit would be conducted across 101 cities, examining ease of living in areas such as housing and water supply, starting with the next annual audit plan in 2026-27.
    It will continue progressively over the next three to four years, he added.
    "We will conduct a specific audit focused on 101 cities, which will examine ease of living in different aspects. It could be on mobility, housing, or water supply," Murthy told reporters.
    He was speaking after launching the Centre of Excellence for Financial Audit (CoEFA) here.
    The audit will be carried out through short studies to ensure a fair assessment of the progress made by cities in developing infrastructure and providing services, he said.
    "This will roll out from the next annual audit plans in 2026-27 and will continue progressively over the next three to four years," Murthy added when asked if there is a proposal to assess major cities on ease of living.
    On the use of digital tools like AI, Murthy said the CAG has facilities such as the Centre for Data Management and Analytics (CDMA) in Delhi and the Centre of Excellence in Digital Audit of Revenue (CEDAR) in Bengaluru, which analyse large volumes of data.
    "The entire GST data is available there. This functions more like a concurrent audit that already happens. The analysis is done, the audit is conducted in real time, and feedback is provided. This capability is being replicated across the department," he said.
    Murthy noted that under the Digital India programme, governments have digitised most processes, creating a centralised repository of data.
    "In view of this, it is apt that the CAG leverages the skills and knowledge developed in revenue audits and ERP audits," he added.
    To further strengthen its skillsets, the CAG has tied up with IIT Madras to train more than 5,000 officers in AI, data analytics, and cybersecurity, which are critical for the future. The CoEFA will integrate financial auditing into this skillset, he said.
    Murthy said the CoEFA, established under the Director General of the National Academy of Audit and Accounts (NAAA), Shimla, will enhance the academy’s capabilities in the crucial area of financial auditing.
    "The centre will focus on delivering faster and more efficient financial audits using technology," he said.
    "This will be the fourth specialised centre under the department, after the ones in Noida, Jaipur, and Rajkot, which focus on IT audits, environmental audits, and local body audits. This centre will concentrate on financial audits," Murthy added.
    He said the centre is expected to support audit academies across the country and play a leadership role in building capacity for international institutions.
    According to a press release, CoEFA has been launched to realise the CAG’s vision of creating a knowledge-driven platform to transform financial auditing in the public sector, covering Public Sector Enterprises (PSEs), Autonomous Bodies (ABs), and Urban Local Bodies (ULBs).
    The release added that the vision of CoEFA is "to be recognised as a Centre of Excellence for Financial Audit of PSEs, ABs, and ULBs by effectively combining digital innovation with human expertise and institutional experience—evolving into a world-class centre for audit research, analytical insights, and capacity development."
    On the occasion, a Framework Agreement was signed between CoEFA and the Institute of Chartered Accountants of India (ICAI) to foster institutional collaboration in training, research, and joint publications in financial auditing, PSE financial analysis, audits of ABs, and ULB accounts.

(This story has not been edited by THE WEEK and is auto-generated from PTI)