Strategic review of the ACT Auditor-General 2026

Terms of Reference

Background

Under the Auditor-General Act 1996 a strategic review of the Auditor-General ‘must be carried out once in each term of the Legislative Assembly’.¹ The Act provides that the relevant Assembly committee must:

1. decide when the strategic review is to be carried out; ²
2. ask the Speaker to, on behalf of the Territory, engage a person to conduct the strategic review; ³
3. decide terms of reference for the strategic review, in consultation with the Minister; ⁴ and
4. ask the strategic reviewer to conduct the strategic review according to the terms of reference. ⁵

Terms of Reference

1. Strategic review of the Auditor-General

Under the Auditor-General Act 1996 a strategic review of the Auditor-General consists of:

1. a review of the Auditor-General’s functions; and
2. a performance audit of the Auditor-General. ⁶

2. Review of the Auditor-General’s functions

In conducting a review of the Auditor-General’s functions the strategic reviewer will consider the extent to which:

1. present arrangements allow the ACT Auditor-General to fulfil the functions accorded that office in the Auditor-General Act 1996, including those set out in section 10(1) of the Act;
2. the Auditor-General Act 1996 makes appropriate provision to support the work of the Auditor-General; and
3. the extent to which the functions of the Auditor-General, as set out in section 10(1) of the Auditor-General Act 1996, are fit for purpose and reflect best practice.

3. Performance audit of the Auditor-General

In conducting a performance audit of the Auditor-General, the reviewer will consider:

1. Contemporary standards and expected best practice standards that should apply to the Auditor-General and the extent to which the Auditor-General employs and conforms with these. The standards should include behaviours that are:
   1. demonstrating the highest standards of ethical behaviour;
   2. demonstrating a fair and constructive approach to performance audits;
   3. demonstrating accuracy and reliability of assessments and advice; and
   4. building strong relationships with auditees and stakeholders;
2. compliance with legislated requirements;
3. selection criteria and risk frameworks for selection of topics for performance audits;
4. appropriateness and adequacy of evidence leading to the Auditor-General’s findings and recommendations;
5. efficiency of service provision;
6. governance and management practices;
7. effectiveness of communication and relationships with key stakeholders, including the Legislative Assembly for the ACT, the Standing Committee on Public Accounts and Administration, the Standing Committee on the Integrity Commission and Statutory Office Holders, the ACT Executive, and the heads of ACT government agencies;
8. an assessment of human, financial and other resources;
9. value for money for services provided;
10. effectiveness in supporting public accountability in the Territory, including with regard to the findings and recommendations of the ACT Audit Office;
11. the extent to which the Auditor-General fulfils the ACT Audit Office’s self-determined role, namely:
    1. to provide an independent view to the ACT Legislative Assembly and the community on the accountability, efficiency and effectiveness of the ACT Public Sector; and
    2. to promote the efficiency and effectiveness of public services and programs provided by the Territory;
12. how the Auditor-General’s statutory obligations intersect with those of other integrity and oversight bodies such as the ACT Integrity Commission and the ACT Ombudsman;
13. opportunities for modernising the Auditor-General’s reporting practices, in terms of report accessibility and formatting, recommendations that identify achievable process improvements to be made; and
14. the reasonableness of fees charged to audited entities for the costs of conducting audits, including engaging external subject matter experts.

4. Other matters

In relation to both the review of functions and the performance audit the strategic reviewer will:

1. compare present findings with those of the previous strategic review;
2. benchmark the Audit Office against an appropriate comparator;
3. consult with key stakeholders;
4. consider whether any expansion of the legislative functions and role of the Auditor-General would provide additional value;
5. review the results of the Australasian Council of Auditors General’s Independence of the Australasian Auditors General Report 2025 to identify opportunities to improve the independence of the ACT Auditor-General and strategies to address this; and
6. review any other matters the strategic reviewer considers relevant to the effectiveness of the Auditor-General.

5. Timing

The strategic reviewer will commence work in June 2026 and report to the Speaker of the Assembly in or before March 2027.

Qualifications

The strategic reviewer will demonstrate:

1. professional integrity;
2. comprehensive knowledge of public sector auditing;
3. no pecuniary or other interest in the outcome of the Review;
4. the capacity to manage conflicts of interest effectively, where necessary; and will have
5. no substantive ties to the Auditor-General or Audit Office.

The Committee considered the draft Terms at its meeting on 3 March 2026 following consultation with the Minister for Finance, and revised the Terms out of session on 16 March 2026 following correspondence from the Speaker regarding the reporting date.

Mr Ed Cocks MLA

Chair

Standing Committee on the Integrity Commission and Statutory Office Holders

17 March 2026