law: The Comptroller and Auditor-General's (Duties, Powers and Conditions of Service) Act, 1971
  13. General provisions relating to audit.-
  It shall be the duty of the Comptroller and Auditor-General-
  (a) to audit all expenditure from the Consolidated Fund of India and of each State and of each Union territory having a Legislative Assembly and to ascertain whether the moneys shown in the accounts as having been disbursed were legally available for and applicable to the service or purpose to which they have been applied or charged and whether the expenditure conforms to the authority which governs it;
  (b) to audit all transactions of the Union and of the States relating to Contingency Funds and Public Accounts;
  (c) to audit all trading, manufacturing, profit and loss accounts and balance-sheets and other subsidiary accounts kept in any department of the Union or of a State; and in each case to report on the expenditure, transactions or accounts so audited by him.