This inquiry was self-referred on 8 September 2025.
Pursuant to section 48A of the Government Sector Audit Act 1983 (the Act), a review of the Audit Office must be conducted at least once every four years. The Review will examine the audit practices and standards of the Auditor-General and will determine whether the Auditor-General is complying with those practices and standards in the carrying out of the Auditor-General’s functions under the Act.
The Review should address the following terms of reference and report on:
1. The audit methodologies used by the Audit Office of NSW, having regard to:
a. compliance with current professional standards and legal requirements; and
b. compliance with statutory responsibilities under the Government Sector Audit Act 1983
2. Whether the Audit Office has adequate resources to carry out its functions, including the auditing of the local government sector and relevant activities of a related relevant entity;
3. The effectiveness of the Audit Office's communication with clients, particularly in relation to establishing a joint understanding of audits, the scope of compliance programs, and the provision of advice;
4. The management of external audit service providers including selection, performance monitoring and reporting;
5. The adequacy of internal review processes for quality control purposes, including the application of risk ratings to audit findings;
6. The adequacy of operational and strategic risk management, and preparedness for future directions in auditing;
7. Whether the audits conducted by the Audit Office provide value for money by meeting their objectives and contributing to improved accountability by government agencies within New South Wales;
8. The Audit Office's response to the previous statutory review undertaken in 2022;
9. Any other matters that may be referred to the Review by the Committee during the course of the review.
