The Auditor-General is an independent officer of Parliament
The Auditor-General supports parliamentary scrutiny by auditing Commonwealth entities and reporting findings to Parliament. The Australian National Audit Office provides the staff and professional capability that carries out this work.
The role is deliberately independent from day-to-day executive government so audit findings can be made without ministers controlling the conclusions.
Financial statement audits
The ANAO audits the financial statements of Commonwealth entities to provide assurance about whether they fairly present the entity's financial position and comply with relevant frameworks. These audits form part of the wider public-sector accountability system.
A clean financial audit does not necessarily mean every program is efficient or successful; it primarily addresses financial reporting and controls within the audit scope.
Performance audits
Performance audits examine whether government programs and entities are operating effectively, efficiently, economically and ethically. Reports can analyse procurement, grants, project delivery, governance and implementation problems in substantial detail.
These audits are especially useful for readers trying to move beyond announcements and examine whether a program delivered what government said it would.
Recommendations are influential but not court orders
ANAO reports commonly make recommendations to improve administration. Agencies often agree or partly agree to recommendations, but the Auditor-General does not manage the agency or directly implement the fixes.
Parliamentary committees can follow up audit findings, and agencies may report on their responses through later reviews and annual reporting.
How to use an audit report
Read the audit objective, criteria and scope before relying on the headline conclusion. A report may examine one phase of a program rather than the entire policy, and findings should be tied to the period audited.
The ANAO report itself is preferable to a party media release summarising it because the original document shows the evidence, agency response and the exact wording of findings.
Primary sources and further reading
We use authoritative Australian institutions as the starting point for this explainer. Follow these links for the underlying rules, official guidance and current details.