The Office of the Auditor-General is conducting a thorough examination of the Audit Act 1969 to modify and update it, ensuring alignment with international standards and best practices.
Finance Minister Professor Biman Prasad noted that the Act has not been amended since 2006 and thus fails to reflect the latest advancements in public sector auditing standards and practices.
The Deputy Prime Minister highlighted that the primary goals of the review include enhancing the independence of the Office of the Auditor-General (OAG) as prescribed by the Constitution, clarifying the public auditing mandate, and specifically including compliance, IT, and environmental auditing responsibilities. Additionally, the review aims to guarantee that all audits adhere to the relevant international auditing standards, specifically the International Standards on Auditing and the International Standards for Supreme Audit Institutions.
Further objectives include safeguarding the responsibilities of the Auditor-General and OAG staff concerning reporting of audit findings, recognizing the OAG’s budget, staffing, and revenue flow in accordance with the 2013 Constitution, allowing for the review of audits for entities not covered by the Auditor-General under the Constitution, and expanding the Auditor-General’s authority to access data, including electronic data.
Professor Prasad mentioned that the Audit Bill 2024 has benefited from significant consultations and received technical support from the Pacific Association of Supreme Audit Institutions, with findings recently presented to Parliament.
While there has been considerable backing for the proposed amendments, stakeholders have requested clarifications on certain aspects of both existing and proposed legislative sections.