In a major development aimed at enhancing audit excellence in Public Sector Undertakings (PSUs), the Institute of Chartered Accountants of India (ICAI), through its Committee on Public and Government Financial Management (CPGFM), has signed a Memorandum of Understanding (MoU) with the Office of the Comptroller & Auditor General (O/o CAG) of India. The MoU, signed on April 22, 2025, marks a strategic partnership to strengthen the capacity development framework within the CAG of India and advance the quality of public sector audits.
The ceremony was graced by Shri K Sanjay Murthy, the Hon’ble CAG of India, and CA. Charanjot Singh Nanda, President of ICAI, alongside senior officials from both organizations, including Shri A.M. Bajaj, Deputy CAG (Commercial), and CA. Prasanna Kumar D, Vice-President of ICAI
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Shri K. Sanjay Murthy highlighted the importance of this partnership, emphasizing that the MoU will bolster the capacity development framework in the CAG of India, particularly in the area of PSUs audits. “Structured training programs will ensure that audit officers are well-equipped with the necessary skills to meet the evolving challenges of auditing in public sector enterprises,” he stated.
CA. Charanjot Singh Nanda, President of ICAI, expressed his enthusiasm about the partnership, calling it a step forward in nation-building. “This MoU is more than just a partnership; it’s a powerful collaboration aimed at enhancing knowledge sharing and providing world-class training to auditors. ICAI is proud to play a key role in empowering auditors through technical expertise and specialized training,” he remarked.
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Under the terms of the MoU, ICAI will provide entry-level training for CAG officers, focusing on critical areas such as accounting standards, auditing standards, and the use of IT tools for PSU audits. The first batch of the training program is expected to begin in May 2025 at ICAI’s Centre of Excellence in Hyderabad. The program will cater to 50 CAG officers and will be delivered by ICAI’s specialized boards, including the Accounting Standards Board (ASB), Auditing and Assurance Standards Board (AASB), and Digital Accounting and Assurance Board (DAAB).
The MoU is initially valid for three years, with the possibility of extension based on mutual agreement. This strategic collaboration marks a significant step toward enhancing the quality and effectiveness of public sector audits, reinforcing the commitment of both ICAI and CAG to strengthening India’s auditing framework.
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