CoEFA to Transform Public Sector Financial Audits Through AI, ML and Data-Driven Tools
HYDERABAD, NOVEMBER 26, 2025: Comptroller and Auditor General (C&AG) of India K Sanjay Murthy, on Wednesday, launched the Centre of Excellence for Financial Audit (CoEFA) at Hyderabad.
Deputy C&AG (Commercial & Report Central), Anand Mohan Bajaj, Additional Deputy C&AG and DG, National Academy of
Audit and Accounts (NAAA) S. Alok, along-with other C&AG officials were also present during the inauguration. CoEFA has been launched to realise the vision of the Comptroller and Auditor General (C&AG) of India towards establishing a Centre of Excellence to act as a knowledge-driven platform that seeks to transform the landscape of financial auditing in the public sector, with a focused mandate covering Public Sector Enterprises (PSEs), Autonomous Bodies (ABs) and Urban Local Bodies (ULBs).
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 have never been more 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 and human capital development to raise the bar for public sector auditing in India and beyond. Anchored in the constitutional mandate of the C&AG of India to ensure accountability and transparency in public expenditure, the CoEFA seeks to operate as a hub for research, innovation, policy support and capacity building. It would support auditors, audit institutions and other stakeholders in developing the skills, tools and knowledge required to navigate the increasingly dynamic financial governance environment.
The vision of the CoEFA is “to be recognised as a Centre of Excellence for Financial Audit of Public Sector Enterprises (PSEs), Autonomous Bodies (ABs) and Urban Local Bodies (ULBs) by effectively combining digital innovation with human expertise and institutional experience – evolving into a world
class centre for audit research, analytical insights and capacity development.” C&AG of India also unveiled the official logo and board of the CoEFA on this occasion. The website template with the features of CoEFA was also demonstrated to the C&AG of India by the CoEFA team.
The facility was inaugurated at a temporary location of the erstwhile Regional Capacity Building and Knowledge Institute (RCB&KI), in the Accountants General Offices Complex in Hyderabad. The C&AG of India envisioned that the National Academy of Audit and Accounts (NAAA), Shimla, being the premier training institute of the Indian Audit and Accounts Department (IA&AD), should take a lead in research and capacity building in nuanced areas of financial auditing in the IA&AD. Therefore, the CoEFA in Hyderabad would function under the NAAA, Shimla and technical control of the working of the Centre would be with the Commercial Audit Wing at C&AG Headquarters.
On this occasion, a Framework Agreement was signed between the CoEFA of NAAA, under the aegis of the C&AG of India, and the Institute of Chartered Accountants of India (ICAI) to foster institutional collaboration in training, research, and joint publications in the field of financial auditing and PSE’s financial analysis, audit of Autonomous Bodies, and audit of accounts of Urban Local Bodies. The Agreement was signed by C.A. Prasanna Kumar D., Vice-President, ICAI and S. Alok, the DG, NAAA. This Agreement will further strengthen the earlier MoU signed between O/o C&AG and the ICAI on 21.04.2025, which establishes a framework for collaboration between both these institutions to leverage the experience and expertise of ICAI in the areas of commercial accounting & financial auditing and other related aspects for contributing towards capacity development in the institution of C&AG of India.
The C&AG of India also inaugurated CoEFA’s first capacity-building workshop on the Companies Act, 2013, held from 26 to 28 November 2025 in collaboration with the Regional Capacity Building and Knowledge Institute (RCBKI), Mumbai. Designed for IA&AS Officers, Senior Audit Officers and Assistant Audit Officers involved in the financial audits of Public Sector Enterprises and Autonomous Bodies, the programme highlights the importance of the Companies Act as the foundation of corporate governance in India. As the first offering under CoEFA’s capacity development framework, this workshop represents an important step in strengthening institutional capability and reaffirming the commitment to professional integrity within India’s public audit ecosystem.
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