New Delhi – India’s national auditor is moving towards remote and technology-driven audits, bringing artificial intelligence and digital platforms into its core operations as part of a wider push to modernise public oversight.
The Comptroller and Auditor General of India (CAG) is developing an in-house large language model, known as CAG-LLM, to mine decades of audit records and generate sharper insights. Officials said the tool will support auditors in analysing risks, handling large datasets and producing more consistent reports.
A digital portal, CAG-Connect, is also set to be launched, giving nearly one million government entities a single platform to respond to audit queries and track inspection reports. The portal aims to improve transparency and reduce delays in resolving audit observations.
“We are making a system-wide shift towards remote and hybrid audits,” senior CAG officials said in a briefing. “The use of AI tools and secure access to government platforms will allow us to cover more ground while reducing time spent at field offices.”
The reforms are part of a transition to risk-based auditing, underpinned by access to financial management systems, e-procurement portals and sectoral databases. Officials said geospatial tools such as PM GatiShakti are being used to strengthen evidence and identify anomalies in public spending.
Pilot projects have already tested remote methods. A concurrent goods and services tax (GST) audit was carried out at central and state offices using standardised queries, while a remote compliance audit in Telangana’s registration department demonstrated real-time coordination without extensive field presence.
In West Bengal, a virtual audit system linked to the AuditOnline platform has enabled paperless certification of local bodies.
Hybrid audits, combining digital scrutiny with targeted field visits, are being used in areas with limited system maturity. Haryana recently piloted such an approach in its public works department.
Risk assessment models drawing on historical audit findings and state databases are also being developed to focus on high-risk areas.
Officials said Tamil Nadu has provided access to more than 20 state databases, allowing auditors to track procurement patterns and expenditure clusters.
The CAG’s strategy also includes setting up data analytics cells across state offices and appointing digital transformation officers to lead innovation. These hubs will provide training, integrate with state systems and promote adoption of remote audits.
Country’s audit system has long been criticised for its slow processes and reliance on paper-based records. By moving online and embedding AI into its workflow, the CAG is seeking to expand coverage, improve efficiency and make oversight more data-driven.
