“We plan to come out with a report on this in about 4-5 months,” deputy CAG Anand Mohan Bajaj told the media in New Delhi on Wednesday.
These state-run firms’ compliance will be benchmarked against Sebi’s Business Responsibility and Sustainability Reporting (BRSR) framework, Bajaj added.
The CAG’s latest efforts mirror the emergence of sustainability as a major focus area across the global audit landscape.
The BRSR framework mandates top 1,000 listed companies to comply with a broad set of reporting requirements covering various ESG aspects. These include disclosures on environmental resource management, emissions, biodiversity, climate change mitigation and adaptation. These also cover social aspects, such as employee well-being, community engagement, human rights, and governance factors, including board diversity, ethics, anti-corruption measures, and risk management.
The CAG will set up a centre of excellence (CoE) for financial audit in Hyderabad to firm up high-quality financial audit methodologies across departments, Bajaj said.
“The centre will serve as an incubator for global best practices, foster advanced skills, and drive the standardisation of high-quality financial audit methodologies across the department,” Bajaj said.
CAG K Sanjay Murthy will launch the centre soon.
The decision to set up the centre was announced by Murthy at the 32nd Accountants General Conference that concluded this week.
At the conference, Murthy issued a directive to “break down the silos” between the CAG’s audit and accounts functions, recognising accounts offices as “goldmines of invaluable financial data”.
“The mandate is to transform the boundary between audit and accounts into a seamless bridge, enabling audit teams to systematically leverage granular data including vouchers, sanctions, and challans for their work,” Bajaj said.