The Comptroller and Auditor General of India (CAG) has discovered, with the help of artificial intelligence (AI) and Machine Learning (ML), a large number of fraudulent cases in many states while auditing their beneficiary schemes, CAG K Sanjay Murthy said on Friday. Addressing the second State Finance Secretaries Conference, Murthy said, “With the help of AI/ML, we found a large number of fraudulent cases in many states while auditing their beneficiary’s schemes. This AI/ML-based forensic audit can save significant financial resources of the state government which are presently being fraudulently misused.” “Digitisation of our auditing processes is currently our topmost priority to ensure (a) remote audits with less hassles to executive; (b) timely audits and to provide greater assurance to stakeholders and, (c) greater coverage, for example, 100 % in GST/IT audits of databases etc,” he said. Murthy also announced that CAG plans to roll out remote audits in all government departments across the country wherever departments have digitised their data “At present, we are working on priority to fully utilise the various latest technological solutions available for risk assessment and distance/remote auditing. We have successfully conducted the remote audit of GST, Stamp and Registration, e-Procurement, Works Audit, DBT Schemes in some states. Now, our target is to roll out this remote audit in all departments across the country wherever they have digitised their data/records," he said. Observing that state governments are making progress in adopting technology and bringing about greater efficiency in the public financial management framework, Murthy said, “The roll out of critical public finance IT infrastructure such as the Integrated Financial Management Information System, Works and Accounts Management Information System, Government e-Procurement Platforms, e-voucher Systems, Digital India Land Record Modernisation Programme, Inspector General of Registration portals will not only strengthen the digital footprint in states but also bring in greater transparency and accountability, thereby aiding the governance.” Addressing the conference, Expenditure Secretary Vumlunmang Vualnam said the issues deliberated upon were highly relevant for governments at both Union and state level. He said initiatives like “SNA SPARSH” will enable better cash management and recommended that schemes like Special Assistance to States for Capital Investment will help the states in implementation of IT-related infrastructure like IFMS in public finance.
