Our role
The Auditor-General reports directly to Parliament on the audits of state and local government entities covering financial reports and operations, controls and matters of public interest. Our audits identify whether public sector services and activities are effective, efficient and properly accounted for. We also provide recommendations to SA Government entities on future improvements they could make to deliver better outcomes to the South Australian community.
Our mandate
The Auditor-General is appointed by Parliament under the Public Finance and Audit Act 1987. The Act establishes the Auditor-General’s independence from the Executive Government and prohibits external direction in performing their duties and exercising powers.
The Act establishes the Auditor-General’s mandate for both state and local government entities and prescribes the financial reporting obligations of the Treasurer and public sector entities. It also gives us the power to request documentation to perform our audits.
Our main work is to perform audits of the financial statements of SA Government entities. We audit around 170
SA Government entities, including government departments, statutory authorities, public corporations and universities. The Act defines what a public entity is.
Section 36(1) of the Act requires us to provide an opinion on:
- whether the Treasurer’s statements reflect the financial transactions of the Treasurer as shown in the accounts and records of the Treasurer for the previous financial year
- whether the financial statements of public authorities are based on proper accounts and are fairly presented in line with legislative requirements, Treasurer’s Instructions and Australian accounting standards
- the controls exercised by the Treasurer and public authorities that ensure the receipt, expenditure and investment of money, acquisition and disposal of property and incurring of liabilities is sufficient to provide reasonable assurance that the financial transactions of the Treasurer and public authorities were conducted properly and in line with law.
The scope of our financial audits often differs from private sector auditors. Our audits consider matters of public interest which may be reported to the Parliament of South Australia. This work will generally be performed along with financial statement audits.
The Act requires us to report the outcomes of these audits to the Parliament of South Australia. We also attend parliamentary committee hearings to respond to questions about our reports.
Our reports
Financial audit reports
Our main report is the Auditor-General’s Annual Report. It reports on the outcomes of our financial statement audits and is completed by 30 September each year. It has four parts:
Part A – Executive summary – A summary of the main matters we believe should be brought to Parliament’s attention
from our annual audits of public sector entities. This includes significant financial outcomes, events and control
matters communicated to entities and extended reviews
Part B – Controls opinion – A report on our approach to the controls opinion and the significant control matters we
identified.
Part C – Agency audit reports – A summary of the audit outcomes for each agency included in the annual report,
including commentary on significant issues of administration, financial management and control.
Part D – Special report on matters of public interest with significant impact to the people of South Australia, includes
observations and recommendations based on our findings.
Other reports
We produce other reports on significant financial management, accounting and control matters in the public sector. These may include reports on:
- the efficiency, economy and effectiveness with which a state or local public authority manage and deliver activities and any recommendations we may make to address issues and improve performance
- findings and recommendations on IT issues of importance and interest in the public sector
- examinations specifically requested by the Parliament of South Australia, Treasurer, Minister or the Independent Commissioner Against Corruption
- issues referred by whistleblowers and other members of the community
- summaries of confidential government contracts.
Our reports are tabled in Parliament and published online.
Our audits
Financial audits
We audit the financial statements of SA Government agencies every year in line with Australian accounting standards, legislation and Treasurer’s Instructions. We provide a reasonable level of assurance that these financial statement reports are free from material misstatements. This is given in the form of an Independent Auditor’s Report that gives an opinion on whether the financial report gives a true and fair view of the financial position and performance of the agency.
The program is delivered by about 10 of our staff and a small number of external contractors.
Read more about our financial audits
Performance audits – state and local governments
Our performance audits provide reports on in-depth assessments of whether SA Government entities (both state and local governments) are effective, efficient and economical in the programs and services they deliver, and that they are delivered in line with the law. A performance audit may cover the entity’s whole operations, one activity, or an activity across several entities.
IT audits
Our IT audits provide an independent assessment of how public sector agencies manage and protect their information technology systems and data. We examine the controls, processes and systems that support the secure and reliable use of technology in delivering public services. The goal is to help agencies ensure that:
- information systems are secure, protecting against unauthorised access, data breaches, and cyber threats
- systems function reliably and accurately so services are delivered efficiently and records are documented and correct
- agencies comply with legislation and policies, such as data protection, procurement and cybersecurity standards.
Our key relationships
Parliament
The Auditor-General’s primary relationship is with Parliament. The Public Finance and Audit Act 1987 states that the Auditor-General must submit an annual report to Parliament each year. This report is the primary communication between the Auditor-General and the Parliament. We also produce other reports throughout the year on significant financial management, accounting and control matters in the public sector.
An effective working relationship exists between Parliament’s Economic and Finance Committee and the Audit Office of South Australia. The Auditor-General and senior audit officers meet regularly with the Economic and Finance Committee to discuss issues relating to audit matters raised by the Auditor-General and other matters of interest to the Committee. We also attend parliamentary committee hearings to respond to questions about our reports.
Our clients
We actively engage with our clients before and during an audit and discuss significant findings with their representatives. To ensure transparency and procedural fairness we provide our clients with written advice of our findings and recommendations and invite the client to respond to these before publishing our reports.
Australasian Council of Auditors-General
We work closely with other audit professionals in Australia and the pacific region. We are an active member of the Australasian Council of Auditors-General (ACAG), a body formed for the sharing of information and intelligence between Auditors-General in a time of increasing complexity and rapid change.
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Our structure
Our executive leadership
Our executive team drives our office forward to achieve our strategic goals, maintain its high-quality services and comply with relevant laws, codes and direction.
Our financial auditors
Our financial auditors provide reports on audit opinions on the financial statements and controls for all SA Government entities. These audits provide assurance to Parliament that the financial statements are based on proper accounts and fairly presented in line with accounting standards. Our work involves:
- auditing financial statements – We examine the financial statements of SA Government departments, agencies, and public entities to assess whether they are accurate and comply with accounting standards and relevant laws.
- assessing internal controls – We review the systems and processes agencies use to manage public money, ensuring that controls are in place to prevent errors, waste, or fraud.
- ensuring compliance – They check that government entities are following legislation, regulations, and policies, particularly when spending taxpayer funds.
- reporting findings to Parliament – Auditors prepare formal reports on their findings, which are tabled in Parliament. These reports help the SA Government Ministers and agency staff, and the public understand how well agencies are managing public resources.
- recommending improvements – Where weaknesses are found, our auditors make recommendations to help agencies improve their financial management, risk oversight and operational efficiency.
The program is delivered by about 100 of our staff and a small number of external contractors.
Our performance auditors
Our performance auditors provide reports on in-depth assessments of whether SA Government entities (both state and local governments) are effective, efficient and economical in the programs and services they deliver, and that they are delivered in line with the law. A performance audit may cover the entity’s whole operations, one activity, or an activity across several entities.
The program is delivered by our performance audit team of about 12 staff.
Our IT auditors
Our IT auditors assess the effectiveness of information technology controls and systems in SA Government agencies. Our work includes:
- reviewing IT general and specialised controls using established audit methodologies
- supporting financial audit teams by evaluating the IT environments that support financial systems
- reporting on control issues that may affect the confidentiality, integrity, or availability of data
- conducting extended reviews of ICT projects and systems across multiple agencies, with findings often reported to Parliament
- engaging external ICT experts when specialist testing is required, including managing contracts for this work.
Our business services team
The business services branch provides our office with specialised audit services including technical expertise, data analytics and delivers our business’s core functions.
It is responsible for providing and maintaining our audit methodologies, practices and tools, technical advice on interpreting and applying accounting and auditing standards and the overall quality assurance of our audit activities.
It also manages stakeholder engagement and communications, records and information, policy, strategy, governance and our human, financial, technology, security and physical resources.
These services are delivered by our team of about 40 staff.
Professional associations
We have a close relationship with two professional accounting associations: CPA Australia and Chartered Accountants Australia and New Zealand. Many of our employees are members of these organisations and participate in their study programs to gain the professional qualification they provide.
We were the first organisation in Australia to be awarded with Recognised Employer Partnership status by CPA Australia. This recognition highlights our professional development processes and programs, and our commitment to our employees’ ongoing learning. The Recognised Employer Partnership program offers a number of benefits to employees who are either studying towards the CPA qualification or are CPA members.
We are proud sponsors of a prize recognising high achievement in audit and accounting studies for all three universities in South Australia.
