Consider the following statements regarding the constitutional and functional framework of the Comptroller and Auditor General (C&AG) of India and the audit of State-owned entities such as distribution companies (DISCOMs):

Statements

1. Under Articles 148–151 of the Constitution, the C&AG's audit reports on State public sector undertakings are required to be tabled before the Parliament of India, since such undertakings receive substantial funding from the Union government.
2. A 'horizontal performance audit' conducted by the C&AG across multiple State-owned entities of the same type is a form of performance audit that examines operational and financial outcomes, as distinct from a compliance audit which checks adherence to rules and regulations.
3. The C&AG may consolidate systemic deficiencies identified across State-level audit reports and bring them to the notice of the Union executive for policy-level consideration, even though C&AG audit reports themselves are recommendatory and do not constitute executive orders.