The Auditor-General at a glance

MPs' guide to the Auditor-General.

The Controller and Auditor-General – more commonly known as the Auditor-General – is an officer of Parliament who audits all of New Zealand’s public entities.

The Auditor-General has a Deputy who is also an officer of Parliament. The Deputy can perform all the functions and exercise all the powers of the Auditor-General.

The role and functions of the Auditor-General have been in place in New Zealand since the 1840s. The current role and functions are set out in the Public Audit Act 2001.

As an officer of Parliament, the Auditor-General is independent of the Executive Government and cannot be directed by them in how to do the job or what to do.

The Governor-General appoints the Auditor-General on the recommendation of the House of Representatives for a non-renewable seven-year term. The Auditor-General is accountable to Parliament for how the Office uses public money to do its job.

As an officer of Parliament, the Auditor-General is independent of the Executive Government and cannot be directed by them in how to do the job or what to do.

This approach, as set out in the Public Audit Act, ensures that the Auditor-General’s investigations and views about the use of public money are objective and free from political influence. Having an impartial and independent “public watchdog” to provide a check on government spending is important.

By law, the Auditor-General is responsible for auditing about 3600:

  • government departments;
  • Crown entities;
  • schools and universities;
  • district health boards;
  • ports and airports;
  • State-owned enterprises;
  • Crown Research Institutes;
  • statutory bodies;
  • licensing trusts; and
  • local councils and council-controlled organisations.

Collectively, we call these "public entities".

Almost every public entity is required to have its annual financial statements audited. This means that the Auditor-General’s staff and contracted auditors have ongoing contact with all of the public sector every year.

No other organisation – public or private – has the overview of the whole public sector that the Auditor-General has.

The Auditor-General employs about 365 staff in two business units – the Office of the Auditor-General and Audit New Zealand – and contracts about 50 private sector auditing firms. The Auditor-General appoints auditors to carry out audits and is responsible for their performance.

The work of the Auditor-General is designed to give assurance to Parliament, public entities, and the public that public entities are fairly reflecting the results of their activities in their annual reports.

Additionally, the Auditor-General keeps an eye on whether public entities are carrying out their activities effectively and efficiently, and on matters of waste, probity, legislative compliance, and financial prudence in the public sector. Sometimes, this involves matters that directly affect MPs, such as the administration of travel allowances.

No other organisation – public or private – has the overview of the whole public sector that the Auditor-General has.

The Auditor-General reports findings and makes recommendations so that those with responsibility for making improvements can take action. This includes highlighting examples of good practice that can help improve public sector management and performance.

The Auditor-General and their staff carry out inquiries into issues that may arise from their audit work, a written concern, or a request for an inquiry. The Auditor-General is not obliged to act on a request. The final decision on whether to carry out an investigation into any particular issue rests with the Auditor-General.

The Auditor-General does not have the power to enforce recommendations or to change or overturn decisions made by others. However, the independent and objective nature of the Auditor-General’s work, the scrutiny by Parliament that it supports, and the ongoing contact between public entities and the Auditor-General’s staff sees most recommendations acted on.

It is important to note that the Auditor-General is not a “complaints” agency. Most of the Office’s work involves carrying out the role’s statutory functions.

The Auditor-General and their staff carry out inquiries into issues that may arise from their audit work, a written concern, or a request for an inquiry. The Auditor-General is not obliged to act on a request. The final decision on whether to carry out an investigation into any particular issue rests with the Auditor-General.

Our reports are available on the Auditor-General’s website at oag.govt.nz/reports.

Sometimes, this will result in a major inquiry and public report, such as Inquiry into the Saudi Arabia Food Security Partnership reported in November 2016.