The Kerala State Audit Department takes its present form from the three sister units of Audit Department of the former Travancore, Cochin and Madras States following the formation of Kerala State comprising the areas which were under the administration of the three states.
The formation of this Department is correctly attributable to the constitution and growth of authorities intended for the local administration of the urban and rural areas in the respective parts of the state.
In the Travancore area the Local Fund Audit Department was constituted in the erstwhile Princely state of Travancore in the year 1942. Prior to this, the audit of the Local Bodies in the state was conducted by the Travancore Accountant General.
The accounts of the Municipalities of the former Cochin state were under the audit control of the Accountant General, Cochin. In the year 1949, the former states of Travancore and Cochin were integrated and the united states of Travancore Cochin came into existence on 1-7-1949. Consequent on integration of the states, the agency for audit of Municipal councils coming under the former Cochin areas transferred to this Department. In the year 1950, the Travancore – Cochin Panchayat Act was enacted and audit of accounts of Panchayats was entrusted to this Department.
In the year 1952, the Examiner of Local Fund Accounts was appointed by the Travancore Cochin High Court of Judicature as the Auditor of Travancore and Cochin Devaswom Boards which was terminated in 1955. In the same year, the periodical audit of the Courts subordinate to the Travancore Cochin High Court was entrusted with this department. Several grant in aid institutions were also placed under the audit control of this Department by govt. The Examiner has also been appointed as the Treasurer of Charitable Endowments for the state in 1952.