The Auditor-General has a statutory duty to carry out an annual audit of the financial reports of about 4000 public entities. This work accounts for about 87% of our total budgeted expenditure and is non-discretionary.
Auditors give an independent opinion on a public entity’s financial statements and other information (such as service performance information) that public entities are required to have audited.
Auditors also add value by recommending improvements to a public entity’s internal controls.
What financial auditors do to carry out an audit
The audit team will carry out much of the annual audit on-site, to readily access the entity’s systems and information and talk to staff. This helps to ensure that we understand the information we’re looking at.
Our work generally includes:
- determining whether significant financial and management controls are in place, are working, and can be relied on to produce complete and accurate data;
- verifying samples of transactions and account balances;
- performing analyses to identify anomalies in reported data;
- reviewing significant estimates and judgements made by the entity’s governing body/senior management;
- confirming year-end balances;
- considering any conflicts of interest and transactions with related parties;
- determining whether accounting policies are appropriate and consistently applied; and
- determining whether all financial statement and service performance disclosures are adequate.
Our audit work can also include:
- assessing appropriateness of the service performance framework, including the performance measures that will be reported externally;
- reviewing and testing controls over performance reporting; and
- verifying reported performance for important performance measures.
Page last updated: 24 June 2014