IPAI demands for more power to PAC, audit of FIs

New Delhi: The Public Accounts Committee (PAC) should be given enough powers to take up cases for investigation on its own, the Institute of Public Auditors of India (IPAI) has demanded.

Besides, banks, other financial institutions and projects under the PPP should be brought within the scope of CAG's audit, IPAI a non-profit organisation comprising specialists in public finance with focus on public accounting and auditing has demanded..

"IPAI strongly demands that PAC should be given enough powers to take up issues for investigation on its own and also advocate to bring banks, other financial institutions and projects under the PPP within the scope of CAG's audit," IPAI said.

It also recommended that apart from providing a time limit within which government departments should submit the Action Taken Reports, a report should also be placed in Parliament about recommendations of the PAC, which have not been accepted by the government along with reasons thereof.

"Currently, banks, FIs and PPP projects are not under purview of CAG and in view of various anomalies witnessed recently in these important segments of economy, CAG should be empowered to audit these sectors records to ensure transparency and accountability," it added.

IPAI, in a statement, has emphasised for a new Audit Act besides prescribing a procedure for selection of the CAG. "Among other things, stipulate a time period within which Comptroller and Auditor General's (CAG) audit reports should be presented to Parliament/State Legislatures after being submitted to the President/Governor as provided in Article 151 of the Constitution of India."

Set up as a Society in 1996, IPAI has over 2,100 members all over India and The Comptroller and Auditor General of India is the patron of the society.