The Office of the Accountant General (AG), Bihar & Orissa (now Odisha) was established at Ranchi due to non-availability of accommodation in Patna and started functioning since 20 May 1912, when Mr. W. Alder, ICS assumed the charge of AG. Consequent to the creation of a separate “Province of Orissa” in April 1936, the Office of the AG, Orissa was separated from AG, Bihar. In order to ensure expeditious settlement of personal claims of State Government officers, the Office of the AG, Bihar was bifurcated in February 1973 into two distinct offices as: -

• Office of the AG-I, Bihar with Headquarters at Ranchi; and
• Office of the AG-II, Bihar with Headquarters at Patna.

With the restructuring of Indian Audit & Accounts Department (IA&AD), the functions relating to “Audit” were separated from those of “Accounts & Entitlement” and four separate offices were created from March 1984 as mentioned below: -

• Office of the AG(A&E)-I, Bihar, Ranchi;
• Office of the AG(A&E)-II, Bihar, Patna;
• Office of the (Audit)-I, Bihar, Patna; and
• Office of the AG(Audit)-II, Bihar, Ranchi

On 15 November 2000, the State of Bihar was bifurcated into Bihar and Jharkhand with Ranchi as the Capital of the latter in accordance with the provision of Bihar Reorganisation Act, 2000. Consequently, the four offices were again renamed as Office of the AG(A&E)-I, Bihar & Jharkhand, Ranchi, Office of the AG(A&E)-II, Bihar & Jharkhand, Patna, Office of the (Audit)-I, Bihar & Jharkhand, Patna and Office of the AG(Audit)-II, Bihar & Jharkhand, Ranchi.

On 1 April 2003, the Offices of the AG(Audit)-II and AG(A&E)-I, Bihar & Jharkhand located at Ranchi were renamed as Office of the AG(Audit), Jharkhand and Office of the AG(A&E), Jharkhand.