Consider the following statements :
(i) It shall be the duty of the Comptroller and Auditor-General to audit all receipts which are payable into the Consolidated Fund of India.
(ii) The Comptroller and Auditor General shall have authority to audit and report on the accounts of stores or stock kept in any office or department of the Union or a State.
Choose the correct option :

The correct answer is (B) Both (i) and (ii) are correct.

• Article 149 of the Indian Constitution empowers Parliament to prescribe the duties and powers of the Comptroller and Auditor-General (CAG). Consequently, the CAG (Duties, Powers and Conditions of Service) Act, 1971, explicitly mandates the CAG to audit all receipts payable into the Consolidated Fund of India to ensure full accounting of revenues.
• Under Section 13 and 17 of the CAG (DPC) Act, 1971, the Comptroller and Auditor General is authorized to audit and report on all expenditure from the Consolidated Fund of India and the States, including the accounts of stores and stock kept in any office or department of the Union or State government.
• Option (i) is correct as per Article 149 and relevant legislation regarding revenue audit. Option (ii) is correct because the mandate of the CAG encompasses not just financial transactions but also the physical assets and inventory management within government departments, making both statements factually accurate.