India’s Audit Process Goes Digital as CAG Prepares November Portal Launch

September 18, 2025: The Comptroller and Auditor General of India (CAG) is looking at some serious reforms within its operations so as to improve the quality of audit outputs. With this aim, the apex government auditor is all set to launch a portal in November that is expected to benefit over 10 lakh auditees. The proposition is to build a unified digital interface that will directly respond to queries, observations, and inspection reports.

Move Towards Remote and Hybrid Audits

This pathbreaking transformation is part of a larger scheme of things to shift to remote and hybrid auditing methods. IT is seen as a welcome move across industries as it will drastically reduce the time spent on field audit. It also stands to expand coverage and strengthen the quality of audit findings. The process is based on risk-based planning and secure access to government databases, including the Integrated Financial Management System (IFMS), e-Procurement, and sector-specific platforms such as WAMIS for public works. It also aims to use geospatial tools like PM Gatishakti to build evidence and consistency across sectors.

Use of Technology and Pilot Studies

Pilot projects of remote audits have already been completed across multiple domains. For instance, concurrent audits of Goods and Services Tax (GST) records are being conducted using centrally validated SQL queries, enabling real-time analysis by central and state audit offices. Similar success was seen in the remote compliance audit of the Stamps and Registration Department in Telangana.

Transparency and AI Integration

The upcoming CAG-Connect portal will allow seamless tracking of audit observations by both auditors and auditee institutions. Officials emphasised that the platform will make the process more transparent and accessible, regardless of location, while also speeding up resolution of audit issues. In addition, the CAG is working on an AI-powered system, CAG-LLM, designed to help auditors access institutional knowledge, analyse large datasets, and identify risks more effectively.

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