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The Office of the Accountant General, Nagaland came into existence in the year 1973. Subsequently, with the restructuring of the offices in the Indian Audit and Accounts Department, with effect from 1st April 1984, the office of the Accountant General (Audit) and the office of the Senior Deputy Accountant General (A&E) were created, both functioning under the overall control of the Accountant General (Audit), Nagaland, Kohima.

The Accountant General functions under the powers vested in the Comptroller and Auditor General of India by the Constitution of India and the Comptroller & Auditor General's Duties, Powers and Conditions of Services (DPC) Act, 1971.

The primary function of Accountant General (Audit) is to conduct Audit and compile the findings of audit in the form of Audit Report for the State of Nagaland and submission thereof to the Governor for placement in the State Legislature under Article 151 of the Constitution of India.

The Accountant General (Accounts & Entitlements) Nagaland is responsible for compilation and preparation of the accounts of Government of Nagaland, in accordance with Articles 149 and 151 of the Constitution of India read with Section 11 of the Comptroller and Auditor General of India (Duties, Powers & Conditions of Service) Act, 1971.

All Departments, Directorates, Offices, Local Bodies and Public Sector Undertakings under the Government of Nagaland, Central Government Offices within the State of Nagaland and residential offices (Nagaland Houses) of the Government of Nagaland situated in other states within India.