The Office of the Director of Audit, Air Force and Navy was set up on 3rd February, 1986 as a result of the reorganization of the Office of the Director of Audit, Defence Services. The office was re-designated as the Office of the Principal Director of Audit, Air Force and Navy with effect from 28th February, 1990.

Consequent upon bifurcation of the said office into Principal Director of Audit (Air Force), New Delhi and Principal Director of Audit (Navy), Mumbai, the Office of Director of Audit (Navy), New Delhi came into existence from 02 April, 2012 as a branch Office to the Principal Director of Audit (Navy), Mumbai. In June 2015, this office was again re-designated as the Office of the Principal Director of Audit (Navy), New Delhi w.e.f. 24 April, 2015 and the Office of Director of Audit (Navy), Mumbai became a branch office under the former. The Office of Director of Audit (Navy), Vishakhapatnam and the Office of Sr. Audit officer (Navy), Kochi have been the branch offices under this office all way along.

The office was re-designated as the office of the Director General of Audit (Navy) on 22nd June, 2017. As the head of the Navy Audit Organisation, the Director General of Audit (Navy) is responsible for the audit of the receipts and expenditure of the of Indian Navy, the Indian Coast Guard and associated units of Defence Research and Development Organisation.

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