New Delhi: The Comptroller and Auditor General (CAG) of India is looking to overhaul the country’s public audit system, moving towards data-centric reviews, artificial intelligence (AI) and stronger institutional capacity. A central pillar of this change is a new Centre of Excellence for Financial Audit in Hyderabad, which will develop specialized skills and uniform audit methodologies across departments, said A.M. Bajaj, deputy CAG (Commercial & Report Central).
The move comes amid wide variations in the audit templates used by autonomous bodies, creating inconsistencies that complicate policymaking. Standardized, technology-enabled audits, Bajaj said, will improve clarity in financial reporting, make findings comparable, and strengthen fiscal oversight across the public sector.
Bajaj said the centre is expected to become a hub for innovation, research and professional development in financial auditing, especially at a time when public sector undertakings follow different templates for examining financial expenditure. The facility will help absorb global best practices and strengthen the foundations of fiscal trust and transparency.
“By creating a dedicated Centre of Excellence, the CAG is reinforcing its role as the supreme audit institution, ensuring that its practices not only meet but also set global benchmarks for excellence,” Bajaj said.
He said the department has been asked to break silos between audit and accounts functions and treat accounts offices as valuable sources of granular financial data. “The mandate is to transform the boundary between audit and accounts into a seamless bridge, enabling audit teams to systematically leverage vouchers, sanctions and challans,” Bajaj said.
This is a shift from traditional sample-based auditing to a more comprehensive analysis of full datasets using advanced tools. A key part of this push is the development of CAG-LLM, an indigenously built Large Language Model designed to support predictive insights, anomaly detection and sharper risk assessments. Combining data integration with AI-driven analytics will allow the CAG to conduct more focused and evidence-based audits with greater impact, he said.
Bajaj said the institution is also putting emphasis on integrating environmental, social and governance (ESG) criteria into audit planning as part of a larger commitment to sustainability.
