PAEC and VAGO - statutory relationship

The Audit Act 1994 addresses the special relationship of the Auditor-General with Parliament and with Parliament's Public Accounts and Estimates Committee (PAEC). The Act assigns several statutory responsibilities to the committee in relation to the work of the Auditor-General. These responsibilities include:

  • review of the Auditor-General's draft annual work plan and annual budgetary needs
  • a consultative role in the formulation of objectives and scope for selected performance audits undertaken by the Auditor-General including:
    • collaborative audits
    • audits that were not in the Annual Plan
    • where there has been a material change to the objectives or issues of an audit in the Annual Plan
    • ‘follow-the-dollar’ performance audits.
  • provision of recommendations to Parliament on the appointment of a financial statement auditor—annually—and a performance auditor—every three years—to independently examine and report on the quality of financial reporting and resource management within the Victorian Auditor-General's Office
  • the ability to exempt the Auditor-General from annual reporting obligations, or obligations under the Financial Management Act 1994 or the Public Administration Act 2004.

These legislative responsibilities of PAEC represent the means by which Parliament protects and supports the independence of the Auditor-General and ensures that there is adequate accountability back to it on the ongoing use of that independence.


Last updated on 15/07/2016