1. CAG needs to audit and report on all expenditures from the Consolidated Fund of India including each states and UTs having a legislative assembly. Then, he ascertains whether the sums of money shown in the accounts, which were consecutively disbursed, were legally available for and applicable to the service or purpose to which they have been applied or charged.

Finally, he checks whether the expenditures confirms to the authority that governs it or not.

2. CAG has to audit and report all transactions of the Union and of the States relating to Contingency Funds and Public Accounts;

3. CAG also needs to audit and report on all trading, manufacturing and profit and loss accounts and balance sheets and other subsidiary accounts kept in any department of the Union or of a State.