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FACT SHEET
AUDIT AMENDMENT BILL 2011
The Audit Amendment Bill 2011 amends the Audit Act 2008 and addresses a
number of issues raised by the Auditor-General.
The Bill amends the definition of "State entity" in the Audit Act by including "single
authorities, joint authorities and controlling authorities" within the meaning of the
Local Government Act 1993. The amendment brings such authorities within the
scope of the Audit Act and requires the Auditor-General to be the auditor for those
authorities. These authorities were previously within the scope of the Financial
Management and Audit Act 1990.
The Integrity Commission Act 2009 resulted in consequential amendments to the
Audit Act to enable the Auditor-General to investigate a matter referred to him or
her by the Integrity Commission and to require that the Auditor-General reports to
the Integrity Commission on any investigation carried out.
This amendment removes these consequential amendments and replaces them
with a stand-alone provision at section 26A. This new stand-alone provision is
consistent with other provisions relating to audits and investigations carried out by
the Auditor-General at the request of the Treasurer, the Public Accounts
Committee and the Ombudsman.
The amendment establishes that any investigation carried out by the
Auditor-General consequent to a request by the Integrity Commission or an
Integrity Tribunal is to be carried out by the Auditor-General under the powers
provided to him or her under the Audit Act.
The Auditor-General has raised the possibility of undertaking an audit on behalf
of, or in collaboration with, the Auditor-General of the Commonwealth or another
State or Territory. The Audit Act currently contains no specific provision that
authorises the Auditor-General to undertake such an audit. This amendment
provides that the Auditor-General, at his or her discretion, may undertake an audit
at the request of, or in collaboration with the Auditor-General of the
Commonwealth or another State or Territory.
The Amendment establishes that any audit undertaken on behalf of, or in
collaboration with, the Auditor-General of the Commonwealth or another State or
Territory is to be carried out by the Auditor-General under the powers provided to
him or her under the Audit Act.
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The amendment also provides that the Auditor-General may determine that fees
are to be paid in respect of any audit carried out on behalf of, or in collaboration
with, the Auditor-General of the Commonwealth or another State or Territory.
The Audit Act currently imposes strict confidentiality requirements on the
Auditor-General. There is no provision in the Act that authorises communication
between the Auditor-General and the Integrity Commission, an Integrity Tribunal
or with the Auditor-General of the Commonwealth or another State or Territory
unless the matter being communicated is in relation to a matter that has been
tabled in a Report to the Parliament.
The amendment exempts communications between the Auditor-General and the
Integrity Commission or an Integrity Tribunal and communication between the
Auditor-General and the Auditor-General of the Commonwealth or another State
or Territory from the confidentiality provision in the Audit Act. The proposed
changes will facilitate greater communication between the Auditor-General and
those other parties.
Before the Auditor-General communicates any matter to the Integrity
Commission, an Integrity Tribunal or to the Auditor-General of the Commonwealth
or another State or Territory, the Auditor-General must first determine whether it is
appropriate that information be provided and that the provision of information
does not contravene the requirements in section 30A of the Audit Act in relation to
sensitive information.
The Auditor-General and the Board of the Integrity Commission have been
consulted during the development of the Bill and both support the Bill.