AI and ML Transforming State Audits: Unearthing Fraud and Boosting Efficiency

The Comptroller and Auditor General of India, K Sanjay Murthy, underscored the significant impact of artificial intelligence and machine learning in unveiling numerous fraudulent instances across different states during audits of beneficiary schemes. Speaking at the Conference of State Finance Secretaries, Murthy stressed the extensive use of digital tools in forensic auditing.

The CAG acknowledged the advancements state governments are making in adopting technology to enhance public financial management. He noted that the implementation of critical public finance IT infrastructure, like Integrated Financial Management Information Systems and e-voucher Systems, will bolster transparency, accountability, and governance efficiency.

Murthy revealed successful remote audits of GST and other departments, emphasizing the importance of AI/ML-based forensic audits to save financial resources. As digitization of auditing processes remains a top priority, enhancing remote audits and providing greater assurance to stakeholders through comprehensive coverage continues to be a focus.

(With inputs from agencies.)