AI and data analytics to power next phase of government audits, says CAG

New Delhi: The next phase of audit will be characterised by deeper integration of technology, the Comptroller and Auditor General (CAG) of India has said. In its report on adding value to public governance 2025-26, the auditor said this will need expanding use of analytics-driven audits, artificial intelligence, machine learning and population-level transaction analysis will enable auditors to identify risks, anomalies and control weaknesses with greater precision and timeliness.

“Increased utilisation of data from digital platforms will support more comprehensive and evidence-based assurance,” the report said.

The experience gained from data-driven social sector audits, remote-hybrid public works audits and data-led establishment audits demonstrates the potential for scalable, technology-enabled approaches that significantly improve audit coverage, detection capability and resource efficiency.

CAG also said it wants to transform its organisation into a technology-enabled, citizen-centric institution that provides timely, risk-based audits, reliable government accounts and seamless entitlement services. This requires expanding artificial intelligence, machine learning and data analytics to examine transactions, detect anomalies and identify control weaknesses.