In India, other than ensuring that public funds are used efficiently and for intended purpose, what is the importance of the office of the Comptroller and Auditor General (CAG)? 1. CAG exercises exchequer control on behalf of the Parliament when the President of India declares national emergency/financial emergency. 2. CAG reports on the execution of projects or programmes by the ministries are discussed by the Public Accounts Committee. 3. Information from CAG reports can be used by investigating agencies to press charges. against those who have violated the law while managing public finances. 4. While dealing with the audit and accounting of government companies, CAG has certain judicial.powers for prosecuting those who violate the law. Which of the statements given above is/are correct?

1. Statement 1 is incorrect. The CAG's role is primarily post-audit. The CAG does not exercise exchequer control (control over the issue of money from the treasury) in India. This power lies with the executive. Furthermore, the CAG's role does not change based on the declaration of a national emergency or financial emergency by the President of India. 2. Statement 2 is correct. The CAG submits audit reports on the appropriation accounts, finance accounts, and public undertakings to the President/Governor, who causes them to be laid before the Parliament/State Legislature. These reports, especially those detailing the execution of projects or programmes by the ministries, are examined by the Public Accounts Committee (PAC). The CAG acts as a 'friend, philosopher, and guide' to the PAC during these discussions. 3. Statement 3 is correct. Audit reports of the CAG often highlight irregularities, instances of waste, financial impropriety, or potential violations of law in the management of public finances. While the CAG itself does not initiate prosecution, the information contained in its reports can serve as crucial evidence or basis for investigating agencies (like the CBI or anti-corruption bodies) to probe further and, if necessary, press charges against those who have violated the law. 4. Statement 4 is incorrect. The CAG performs audit functions related to government companies but does not possess judicial powers for prosecuting individuals. Prosecution is the function of the executive and judicial branches. The CAG's role is limited to auditing and reporting.