AI and ML-based tools to modernize public sector auditing; focuses on PSEs, autonomous bodies, and ULBs
Hyderabad, November 27, 2025 – Comptroller and Auditor General (CAG) of India K Sanjay Murthy launched the Centre of Excellence for Financial Audit (CoEFA) at Audit Bhawan, Hyderabad, on Wednesday, marking a significant step toward modernizing India’s public sector auditing practices.
Leadership Present
The inauguration was attended by Deputy CAG (Commercial and Reports Central) Anand Mohan Bajaj, Additional Deputy CAG and DG, National Academy of Audit and Accounts (NAAA) S Alok, along with other senior CAG officials.
Vision and Mandate
CoEFA has been established to realize the CAG of India’s vision of creating a knowledge-driven platform that transforms the landscape of financial auditing in the public sector. The center has a focused mandate covering:
- Public Sector Enterprises (PSEs)
- Autonomous Bodies (ABs)
- Urban Local Bodies (ULBs)
AI and ML Integration
As public finance systems continue to evolve in complexity and scale, the need for robust Artificial Intelligence (AI) and Machine Learning (ML)-based tools, technology-enabled, and insight-driven auditing practices has become critical.
The Centre of Excellence aims to address this need by creating a forward-looking ecosystem that integrates:
- Cutting-edge digital tools
- Global best practices
- Human capital development
Modernizing Audit Practices
CoEFA will drive modernization of financial audit through:
- Data analytics
- AI-enabled tools
- Cutting-edge research
- Capacity development
The initiative seeks to raise the bar for public sector auditing in India and position the country as a leader in audit innovation globally.
With Hyderabad already established as a hub for technology and innovation, the location of CoEFA in the city provides access to talent, infrastructure, and the ecosystem needed to develop and deploy advanced auditing solutions.
