Comptroller and Auditor General of India V N Kaul said on Monday that there was a need to review government accounting system for bringing in transparency and a "strong" political consensus was essential for the overhaul.
At a global seminar on 'Standard-setting for Government Accounts', jointly organised by CAG and the Institute of Chartered Accountants of India, Kaul said the main criticism of the current system was lack of transparency.
Highlighting that any accounting system had to be part of a large integrated public financial management initiative, he said, "A strong political consensus on a new direction for the accounting system is essential before any overhaul of the system is undertaken."
As there was no clearly established theory of a relation between financial reporting of a particular type and the well being of the people, the CAG said political consensus would determine the success of accounting reform.
"This is likely to take time," Kaul said but cautioned, "development imperatives and the rapid pace of globalisation of the Indian economy along with the increasing convergence of accounting standards the world over, requires us to move quickly."
