How to read a government audit report
A plain guide to audit reports from India's CAG, Pakistan's Auditor-General and Bangladesh's CAG: structure, key terms, PAC follow-up and fair reporting.
Published 18 October 2026, Method
What audit institutions do
Each country has a constitutional office that audits how public money is spent. These are known as supreme audit institutions. They check whether spending followed the law and the rules, whether accounts are accurate, and, in performance audits, whether money achieved what it was meant to. Their reports cover civil ministries, state-owned enterprises and defence spending alike.
- India. The Comptroller and Auditor General of India (CAG) is established under Article 148 of the Constitution. Under Article 151, reports on the Union's accounts go to the President, and reports on a state's accounts go to the Governor, to be laid before Parliament or the state legislature.
- Pakistan. The Auditor-General of Pakistan (AGP) is established under Article 168. Under Article 171, federal audit reports go to the President to be laid before Parliament, and provincial reports go to the Governor to be laid before the Provincial Assembly.
- Bangladesh. The Comptroller and Auditor General of Bangladesh is established under Article 127. Article 128 sets out the duty to audit public accounts, and under Article 132 reports go to the President to be laid before Parliament.
Reports are usually published on the institution's website after they are laid before the legislature. Many are long, technical and released in batches.
How a typical report is structured
Formats vary by country and by type of audit, but most reports contain:
- Preface. The legal basis for the audit and the period covered.
- Executive summary. The main findings, sometimes with totals for the amounts involved.
- Audit scope and method. What was examined and what was not. Read this carefully: an audit usually tests a sample, not every transaction.
- Chapters by ministry, department or entity. Each contains a series of numbered observations.
- Annexes. Detailed tables, lists of cases and sometimes the status of earlier observations.
Key terms
- Audit observation, para or objection. A single issue raised by the auditors, usually with a number. In India and Pakistan it is commonly called a para (paragraph). In Bangladesh it is often called an audit objection.
- Irregular expenditure. Spending that did not follow the rules, for example without proper sanction, without competitive bidding or above an approved limit. Irregular does not necessarily mean money was lost or stolen.
- Recovery. An amount the auditors say should be recovered, such as an overpayment, an unpaid penalty or an unrecovered tax.
- Management response. The audited body's reply. In India, a draft paragraph is sent to the department's Secretary, normally with six weeks to reply, and the final report may change after that reply.
- Departmental Accounts Committee (DAC). In Pakistan, a meeting within the department, with audit present, that reviews paras before they reach the legislature. It may settle a para or direct further action.
- Public Accounts Committee (PAC). A committee of legislators that examines audit reports, questions officials and issues directions. India also has a Committee on Public Undertakings for state-owned enterprises.
- Settled or dropped. A para closed because the auditors accepted the reply, the money was recovered, or a committee decided no further action was needed.
An audit observation is not a finding of crime
Auditors test compliance with financial rules. They do not decide guilt. An observation may reflect a paperwork gap later fixed, a disagreement over interpretation, or a reply that arrived too late to be included. Some observations do point to serious loss or misconduct and lead to inquiries, but that is for other bodies to establish.
When reporting an observation, describe it accurately: “auditors said”, “audit questioned”, “the report found the expenditure irregular”. Avoid words such as “fraud”, “theft” or “scam” unless another authority has established them. Always include the department's response, from the report and from your own request for comment. See our right of response policy.
Following a para over time
The value of an audit observation often lies in what happens next.
- Note the para number, the report title, the year of accounts and the amount.
- Read the management response and any DAC or committee directive recorded in the report.
- Check PAC proceedings and reports on the legislature's website. In India, departments submit Action Taken Notes to the PAC explaining whether facts were accepted, what caused the problem, whether responsibility was fixed and what was recovered.
- Look for the same issue in later audit reports, which often list outstanding paras.
- Use a right to information request for the department's replies or recovery status: see guides for India, Pakistan and Bangladesh.
- Cross-check contracts and suppliers with tender records and company records.
Public accounts committees have repeatedly drawn attention to backlogs of unsettled paras, some going back many years. Old paras that remain open can themselves be a story about accountability.
A worked example (fictional)
Imagine a para in an audit report on a provincial works department. It says the department paid a contractor for 12 kilometres of road resurfacing, but site measurements recorded 10 kilometres. The auditors call the extra payment an overpayment and recommend recovery. The report records that management replied the remaining 2 kilometres were completed after the audit visit. It also notes that the DAC directed the department to produce verified measurement records.
A careful reporter would not write “contractor stole funds”. They would report that auditors questioned the payment, give the department's explanation, and then check what happened: did a later report show the para settled? Did the PAC discuss it? Does the contractor appear repeatedly in similar paras? Each answer moves the story from a claim to a documented outcome.
Do
- Read the scope section to understand what was tested.
- Quote the para number and report so readers can check.
- Include the management response and any committee directive.
- Follow the para into later reports and PAC records.
- Use cautious, accurate language.
Don't
- Treat an audit observation as proof of a crime.
- Add up amounts across paras as if they were all losses.
- Ignore later settlement or recovery.
- Name junior officials who are not identified in the report without strong reason.
- Download or share internal audit drafts from a work device or network.
If you work in government and know of wrongdoing that audits have missed, read whistleblower laws in South Asia and source safety dos and don'ts. Never use a work device or work network to contact a journalist. Our secure tip form is the safest route. For how audits fit into tracing public money, see the money trail.
This is general information, not legal advice.
Frequently asked questions
What is an audit para?
An audit para is a single numbered observation in an audit report, raising an issue such as irregular expenditure or an amount to be recovered. In Bangladesh it is often called an audit objection.
Does an audit objection mean corruption?
No. It means auditors found that spending may not have followed the rules. Some objections are settled when records are produced; others lead to inquiries by other bodies.
Where are CAG of India audit reports published?
On the CAG's website, cag.gov.in, after they are laid before Parliament or the relevant state legislature.
What does the Public Accounts Committee do with audit reports?
It examines the reports, questions senior officials of the departments concerned, and issues directions, for example to recover money or fix responsibility.
What is a DAC in Pakistan?
A Departmental Accounts Committee is a meeting within a department, attended by audit, that reviews audit paras and may settle them or direct further action before they reach the Public Accounts Committee.
How do I find out whether an audit para was resolved?
Check later audit reports, PAC proceedings and, in India, Action Taken Notes. You can also file a right to information request for the department's reply and recovery status.
Sources
- cag.gov.in/ag1/madhya-pradesh/en/page-ag1-madhya-pradesh-audit-product-and-tabli
- pakistani.org/pakistan/constitution/part6.ch2.html
- cag.org.bd/about/brief-introduction
- en.banglapedia.org/index.php/Comptroller_and_Auditor-General
- brecorder.com/news/537671
- today.thefinancialexpress.com.bd/print/tk-230b-stuck-up-due-to-audit-objections