CAG Sanjay Murthy Says Audits Must Improve Governance

Comptroller and Auditor General of India (CAG) K Sanjay Murthy has emphasised that the real value of auditing lies in its contribution to better governance and stronger public financial management. Speaking at a conference in Vietnam, Murthy highlighted the need for Supreme Audit Institutions (SAIs) to adapt to changing governance environments and modernise their audit practices.

He underlined the importance of making audits more relevant to the evolving requirements of public administration. According to Murthy, audit institutions must look beyond traditional compliance checks and focus on how their findings can help improve government systems, accountability and the use of public resources.

Murthy also presented India’s experience with digital transformation in public auditing, explaining how technology can support more effective audit processes and strengthen the work of public audit institutions.

CAG Highlights Audit’s Role in Better Governance

Murthy’s remarks focused on the connection between public auditing and the quality of governance. Government audits examine the use of public funds, assess compliance with established rules and identify weaknesses in financial and administrative systems.

However, the broader contribution of an audit depends on whether its findings lead to meaningful improvements. Audit observations can help public authorities identify gaps in financial management, strengthen internal controls and improve the delivery of government programmes.

By stressing the contribution of audits to improved governance, the CAG highlighted the importance of translating audit findings into corrective action. This approach can help ensure that public institutions use resources more efficiently and remain accountable for their decisions.

Supreme Audit Institutions Must Adapt to Changing Governance Environments

Murthy also discussed how Supreme Audit Institutions need to respond to changes in the way governments operate. Public administration is becoming increasingly complex, with digital systems, evolving financial arrangements and new approaches to delivering public services changing the environment in which audits are conducted.

These developments require audit institutions to update their methods and strengthen their ability to examine modern government systems. Traditional auditing approaches may need to be supplemented with new techniques that can assess digital transactions, technology-driven services and complex public financial operations.

Modernising audit methodologies can help institutions remain effective as government processes evolve. It can also improve their ability to identify risks, examine public spending and provide timely insights to policymakers and administrators.

India’s Experience With Digital Transformation in Public Audit

During the conference, Murthy presented India’s experience in using technology to enhance public audit practices. His presentation focused on digital transformation and its role in improving the way audit institutions carry out their responsibilities.

Technology can support public auditing by enabling the examination of large volumes of financial and administrative information. Digital tools can also help auditors organise records, identify unusual patterns and conduct assessments more efficiently.

The use of technology is particularly relevant as government departments increasingly rely on digital platforms for financial transactions, programme implementation and public-service delivery. Auditors must be equipped to examine these systems and assess whether they are functioning effectively.

India’s experience, as presented by Murthy, highlighted the importance of integrating technological capabilities into audit processes. Such changes can help public audit institutions improve the scope and effectiveness of their work.

Why Digital Auditing Matters for Public Financial Management

Public financial management involves planning, allocating, spending and monitoring government resources. Auditing plays an important role in examining whether public money is being used according to established rules and intended objectives.

Digital transformation can strengthen this process by improving access to information and supporting more systematic analysis of government records. When audit institutions can examine financial data more effectively, they may be better positioned to identify potential weaknesses and areas requiring further scrutiny.

Technology does not replace the need for professional judgement, independent assessment and institutional accountability. Instead, it provides additional tools that auditors can use to examine government activities and develop evidence-based findings.

For public institutions, the wider objective is to use audit insights to improve financial discipline, transparency and administrative performance.

Audit Findings Must Lead to Meaningful Improvements

Murthy’s emphasis on governance points to a broader expectation from public audit institutions: their work should contribute to improvements in the functioning of government. Identifying irregularities and weaknesses is an important part of auditing, but the value of the process also depends on how authorities respond to the findings.

When audit recommendations are examined and acted upon, they can help strengthen financial controls, improve administrative procedures and reduce the risk of recurring shortcomings. This can support more responsible management of public funds and improve confidence in government institutions.

As governance systems continue to change, audit institutions will need to combine modern methodologies with technological capabilities and professional expertise. Murthy’s remarks in Vietnam highlighted this evolving role, with improved governance and stronger public financial management remaining central to the purpose of public auditing.

Modernising Public Audit for Future Governance Needs

The discussion on audit modernisation reflects the growing importance of adapting public oversight institutions to changing administrative and technological conditions. Governments are managing increasingly complex programmes and financial systems, making effective scrutiny essential.

For Supreme Audit Institutions, this means developing the skills, tools and methodologies needed to examine new forms of public administration. Digital transformation can support that process, while independent auditing and follow-up on findings remain essential to accountability.

Murthy’s central message was that audit should be measured not only by the issues it identifies but also by its contribution to better governance. By modernising audit practices and using technology effectively, public audit institutions can strengthen oversight and help governments manage public resources more responsibly.