The Comptroller Mysore was responsible for the accounting and auditing of the State, who functioned under the overall control of the Finance Department. He was the head of the civil audit and accounts office and had subordinate offices for Railway, Electrical, Public Works, Food Supply and Education, under a Deputy Comptroller for each. The Central office compiled the accounts received from the Treasuries, Defence Departments, Forest Department and the Government Industries as well as Classified Abstracts of the Branch offices, who compiled the accounts of the respective Departments and prepared the consolidated accounts of the State. While accounting was done on treasury basis, audit was done on departmental basis.
At the time of Federal financial integration, on 01.04.1950, the Comptroller was Shri V.T Srinivasan, and he became the first AG Mysore after the Office became a part of the IA&AD. The newly formed office AG Mysore, by 1952, prepared its own first edition of manuals for most of the Departments and this was an achievement of the pioneers Shri S Gupta and Shri S.N Ghatak and their two deputies namely Shri V K Subramaniam and Shri B Venkataraman, both officers of the emergency cadre of the IAAS.
In June 1953, the foundation for the new building was laid by His Highness, the Rajapramukh of Mysore State in the presence of Shri V Narahari Rao. The construction was entrusted to state PWD on a site given by the State Government and the three storied complex was constructed by January 1956 which was inaugurated by Shri A K Chanda on 06.02.1956 and the AG Mysore was moved into the new premise which is adjacent to the High Grounds and in the vicinity of Majestic Vidhana Soudha, which was under construction and was considered the largest complex in the area
The Re-organization of the states in 1956 saw the addition of 5 districts of Hyderabad and 3 districts of Bombay presidency and in view of this Audit and Accounting work was increased and the number of sections increased to 88 in 1958 with a strength of 1280.The IRLA (Individual Running Ledger Account) system of payment was introduced from 01.12.1965 in respect of certain departments of the state Government (Co-operation, Sales Tax, Industries and Commerce, Labour, Marketing, Seri-culture, State Accounts etc). A new office complex (new building) was inaugurated by Shri S Ranganathan, C&AG on 14.07.1971. The nomenclature of the state was changed to Karnataka from 01.11.1973 and Shri D.H Veeraiah became the first AG Karnataka.
The AG office Karnataka was reorganized in February 1981 on Departmental basis into two units, each under an Accountant General – AG I and AG II, Shri R.K Chandrashekaran continued as AG I and Shri R.P Srivastava was appointed as AG –II.The total strength of Office of AG-I was 1645 and he was assisted by 4 SR.DAGs in charge of functional groups Viz Accounts group, GE group (certain departments), commercial wing and administration wing.
Functional reorganization took place in 1984 and the offices were bifurcated into two distinct offices with separate cadres to deal with audit and accounting functions. Shr K.J Kurain was the first AG (A&E) who was entrusted with the accounting and entitlement functions of the State Government. The total strength of the office in 1984 was 1261. The Sr.DAG (Administration & Accounts) supervised the Accounting groups (38 sections with strength of 472 in 1984). The GE group supervised by Deputy Accountant General (GE), regulated the pay, maintained leave account, and issued pay/leave salary slips, maintained entitlement registers, prepared history of service of gazetted officers of the State Government including All India Service Officers. There were 17 GE sections and 6 IRLA Sections & the group had strength of 196 and serviced 18654 officers. The Deputy Accountant General (Funds) supervised the Funds group which had 17 sections with a strength of 172 and maintained 1,28,000 accounts.,