The Role of the Auditor General

Colin Murphy

Auditor General for Western Australia

2

• Independent and impartial

• Provide information to Parliament

• Public sector accountability

• Serving the public interest

The role of the Auditor General

WA PublicParliament

Agencies

Executive Government

3

The Auditor General …over 180 years of history in just one slide!

“The role of the Auditor General is a historic one. It is an integral part of the Westminster system of

Parliamentary democracy.”

1989 Burt Commission on Accountability

November 1829:Captain Stirling appointed the

colony’s first Commission of Audit

4

How the OAG contributes to transparency and accountability

A window into what the public sector does

A report card on how well they are doing

An assurance: is what they are saying true?

5

Auditor General Act 2006• Establishes Auditor General as

independent officer of Parliament• Broad access to information• Can examine agency performance

& compliance• Can investigate public money &

property

6

Auditor General Act 2006

Under Sections 17 and 18 of the Auditor General Act 2006:

The Auditor General has powers to investigate;

“any matter relating to public money…or to public property”

“the efficiency and effectiveness with which a related entity of an agency performs functions”

7

What the Auditor General audits

Performance Audit

A continuum, ranging from finance statement opinions to providing assurance about agency controls and compliance and

reporting on agency performance

Issue opinions on financial statements,

controls and Key Performance

Indicators (KPIs)

Review aspects of public

administration affecting controls and compliance

with legislation and standards

Provide Parliament with analysis of

program and operational

performance, recommending

opportunities for improvement when

appropriate

AnnualAssurance

Audit

Controls and Compliance Audits

and IS Audit

Across Government Benchmarking Audit

Provide a way of comparing

performance across areas of common business practice

8

Across Government Benchmarking Audits

Recent reports:- Gifts and Benefits

- Employee Accounts Payable Payments

- Management of Attractive Assets

- Accuracy of Leave Records

- Act of Grace and Like Payments

- Property and Money Held for Specific Purposes

Controls and Compliance AuditsRecent reports:

- Business Continuity Management by Ports- Fraud Prevention and Detection- Conflicts of Interest – Gifts and Benefits- Records Management- Government Purchasing Cards - Regulation of Firearms

10

Information Systems AuditsRecent reports:

- Security Standards Gap Analysis- Security of Online Transactions- Cyber Attacks- Management of Databases and

Portable Storage Devices- Capability Maturity Models

Performance AuditsRecent reports:

- Native Forest Products- Delivering WA’s Ambulance Services- Forensic Services- Management of the Rail Freight

Network Lease- Homelessness- Major Capital Projects- Police Recruits

12

Audit Approach

• Independent and

objective

• Criteria driven

• Evidence based• Compliance with auditing

and assurance standards• No surprises

13

Relationship with Parliament

• Parliament is the Auditor General’s key client• Key Committees

− Public Accounts Committee− Estimates and Financial Operations Committee− Joint Standing Committee on Audit

• Parliamentary surveys• Have regard to the audit priorities of

Parliament

The Integrity Coordinating Group

Independent officers collaborating to promote and strengthen integrity in Western Australian public bodies

www.icg.wa.gov.au

Purpose of the ICG• Fostering collaboration between public sector integrity

bodies

• Encouraging & supporting research, evaluation and policy discussion to monitor the implementation of integrity and accountability mechanisms

• Inspiring operational cooperation and consistency in communication, education and support in public sector organisations about integrity and accountability matters

16

Conclusion

• Integral part of Western Australia’s system of government accountability and transparency

• Independence is paramount

• Unique and historic role

• Serving the Public Interest

17

Thank youColin Murphy

Auditor General for Western AustraliaPerth BC, PO Box 8489, Perth 6849

6557 7500

Website www.audit.wa.gov.au

Email info@audit.wa.gov.au

18

Audit topic selection

List of topic ideas based on internal and external

suggestions

Parliament

Community

Agencies

OAG

Review prioritised topics against KPI coverage

Economic Development

Service Delivery

Social & Environmental

Governance

Develop Topic ideas, review and prioritise against topic selection criteria:

Risk

Auditability

Materiality

Coverage

Impact

Context

OAG Performance Audit Topic Selection Framework

19

Audit Quality Assurance Framework

The ‘Quality Assurance Rainbow’