Accountant General(A&E), Tamil Nadu functions under the Comptroller & Auditor General of India (C&AG) who is the Head of the Indian Audit & Accounts Department. The Comptroller & Auditor General of India is a Constitutional Authority appointed by the warrant of the President of India. By virtue of the provisions of Government of India (Audit & Accounts) Order, 1936 as adopted by the Government of India (Provisional Constitution) Order, 1947 and Article 149 of the Constitution of India, the C&AG had the power to frame rules and give directions in all matters pertaining to the audit of accounts for which he was responsible. The functions of the Comptroller & Auditor General of India are derived mainly from the provisions of Article-149 to 151 of the Constitution of India.

The C&AG's (Duties, Powers and Conditions of Service) Act, 1971 under the Articles 148(3) and 149 of the Constitution was passed by Parliament in 1971.

Mandate for Accounts maintenance

The C&AG's (Duties, Powers and Conditions of Service) Act, 1971 deal with the responsibilities of the C&AG in relation to Compilation of Accounts of the Union, the States and Union territories with Legislatures.

Under the provisions, the C&AG compiles the Accounts of the States, keeps such accounts in relation to compiling of the Accounts of the States as may be necessary and prepares Appropriation Accounts & Finance Accounts every year.

The Appropriation & Finance Accounts are signed by the C&AG of India and presented to the Governor of the State for laying on the table of the State Legislature.