AUDITOR-GENERAL AMENDMENT BILL 2011

i Auditor-General Amendment Bill 2011 No. , 2011

Contents

Part 1--Preliminary

1 Short

title

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2 Commencement

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3 Schedule(s)

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Schedule 1--Functions and powers of the Auditor-General

Auditor-General Amendment Bill 2011 No. , 2011 1

A Bill for an Act to amend the Auditor-General Act

1997, and for related purposes

The Parliament of Australia enacts:

Part 1--Preliminary

1 Short title

This Act may be cited as the Auditor-General Amendment Act

2011.

2 Commencement

This Act commences on the day after it receives the Royal Assent.

3 Schedule(s)

Each Act that is specified in a Schedule to this Act is amended or

repealed as set out in the applicable items in the Schedule

concerned, and any other item in a Schedule to this Act has effect

according to its terms.

1 Functions and powers of the Auditor-General

2 Auditor-General Amendment Bill 2011 No. , 2011

Schedule 1--Functions and powers of the

Auditor-General

Auditor-General Act 1997

1 Paragraphs 8(4)(a) and (b)

After "audit" (wherever occurring), insert "or assurance review".

2 After Division 1 of Part 4

Insert:

Division 1A--Audit of performance indicators

14A Auditor-General to audit performance indicators

(1)

The Auditor-General must, at least once each year, audit a sample of

Agency performance indicators and the quality of reporting against

those indicators.

(2)

In selecting the sample of performance indicators to be audited the

Auditor-General must have regard to priorities of the Parliament

determined by the Joint Committee of Public Accounts and Audit.

3 Subsection 16(1)

Omit "(other than a GBE)".

4 Subsections 16(2) and (3)

Repeal the subsections.

5 Subsection 17(1)

Omit "(other than a GBE)".

6 Subsections 17(2) and (3)

Repeal the subsections.

7 Subsection 18(4)

Functions and powers of the Auditor-General 1

Auditor-General Amendment Bill 2011 No. , 2011 3

Omit "(other than GBEs)", (wherever occurring).

8 After section 18

Insert:

18A Parties to contracts and agreements

(1) This section applies if:

(a) the Auditor-General conducts a performance audit on an

entity under this Division; and

(b) a person (in this section called the contractor) is a party to a

contract or agreement with the entity to:

(i) provide goods or services to the entity; or

(ii) provide goods or services to other persons on behalf of

the entity.

(2) The Auditor-General may audit the performance by the contractor

of its obligations under the contract or agreement if the Auditor-

General considers that the performance by the contractor is likely

to be material to the findings of the audit.

(3) The Auditor-General must include the reasons for auditing the

performance of the contractor in the report of the audit tabled in

each House of the Parliament.

(4) If the contractor is an agency of a State, Territory or local

government, or is a subsidiary of or controlled by such an agency,

the Auditor-General may audit the performance of the contractor

only if requested to do so by the responsible Minister, the Finance

Minister or the Joint Committee of Public Accounts and Audit.

(5) Nothing prevents the Auditor-General from asking a responsible

Minister, the Finance Minister or the Joint Committee of Public

Accounts and Audit to make a particular request under

subsection (4).

9 After Division 2 of Part 4

Insert:

1 Functions and powers of the Auditor-General

4 Auditor-General Amendment Bill 2011 No. , 2011

Division 2A--Other assurance reviews

19A Assurance reviews other than audits

(1) The Auditor-General may undertake assurance reviews other than

audits of:

(a)

Agencies;

(b) Commonwealth authorities and their subsidiaries; or

[Note: such assurance reviews include those conducted by the

Auditor-General in accordance with the Standard on Assurance

Engagements ASAE3000 "Assurance Engagements Other than Audits

or Reviews of Historical Financial Information" issued by the

Auditing and Assurance Standards Board. Such reviews can provide

what is described in the Standard as "limited" assurance, rather than

"reasonable" assurance of the type provided by a performance audit.]

(2) The Auditor-General may determine arrangements for the conduct

of assurance reviews other than audits, including arrangements for

reporting to the Parliament.

(3) The powers under section 32 and 33 may be used for the purpose

of a review under this section only if the review is identified as a

priority of the Parliament for the purposes of this section by

decision of either House of the Parliament or of the Joint

Committee of Public Accounts and Audit.

10 Paragraph 21(1)(c)

Omit the paragraph, substitute:

Note

The heading to section 24 is altered by inserting "and assurance" after "Auditing".

11 Section 24

After "auditing " insert "and assurance".

12 Before paragraph 31(a)

Insert:

Functions and powers of the Auditor-General 1

Auditor-General Amendment Bill 2011 No. , 2011 5

(aa) an assurance review under section 19A that has not been

identified as a priority of the Parliament under subsection

19A(3); or

13 After section 32, before section 33

Insert:

32A Legal professional privilege

(1) To avoid doubt, the Auditor-General's powers under section 32 are

not limited by a claim that information or a document is the subject

of legal professional privilege.

(2) Information or a document does not cease to be the subject of legal

professional privilege merely because it is produced in response to

a direction under section 32.

Commonwealth of Australia Bills

AUDITOR-GENERAL AMENDMENT BILL 2011