New Delhi, Nov. 24 -- India's national auditor is preparing for a major shift in how public spending is examined-moving from delayed, retrospective scrutiny to real-time audits that track ministries and public sector undertaking (PSUs) while projects are still being executed, according to two people aware of the development. The plan is set to be rolled out soon, they said.

The overhaul, led by the Comptroller and Auditor General (CAG), is designed to flag tendering lapses, execution delays and potential losses early, allowing course correction while money is still being spent, rather than years later when the damage is done.

Audit findings are currently published long after the completion of schemes or major financial decisions. Severa...