What the QAO does and how it works
What does QAO do?
QAO assists the Auditor General to conduct annual audits of all of Queensland’s public sector entities and provides an assessment of their financial and performance activities to Queensland’s Parliament.
Through our audit and reporting activities we promote public sector accountability and provide assurance to the Queensland Parliament of honesty and efficiency across the sector.
Public sector auditing differs from private sector auditing in that it extends beyond the typical private sector ‘attest’ audit of financial statements to incorporate the three objectives of probity, propriety and compliance.
Public sector auditing examines whether:
- public monies are used appropriately
- our clients comply with relevant legislation, and
- how our clients measure and manage their performance.
Investigations
Can I refer a matter to the Auditor-General for investigation?
Yes – you can make a public interest disclosure in writing to the Auditor-General. You can identify yourself or remain anonymous.
The Auditor-General will decide whether to look into the matter as part of the normal annual audit process.
What protection do I have if I do refer a matter for investigation?
The Whistleblowers Protection Act 1994 states that if a person gains confidential information because of the person's involvement as a public officer in this Act's administration, the person must not make a record of the information, or intentionally or recklessly disclose the information to anyone, except when authorised to do so by the Act.
QAO's Whistleblower Liaison Officer maintains all information referred on confidential files in a secure environment.
If anyone wishes a matter to be investigated, they can refer the matter in writing to the Auditor-General or email investigations@qao.qld.gov.au.
Complaints
What happens if I don't agree with the outcome of an audit or have a complaint about its conduct?
If anyone wishes to make a complaint about the conduct of an audit or the outcome of an audit, they can refer the matter in writing to the Auditor-General or email complaints@qao.qld.gov.au.
Who is the Auditor General?
The Queensland Auditor-General is legally responsible for the annual audit of all State public sector entities.
The Auditor-General is independent and promotes public sector accountability and assurance to the Queensland Parliament of honesty and efficiency across the public sector.
The Auditor-General is appointed by the Governor-in-Council for a maximum non-renewable term of no more than seven years.
Click here to read about the current Auditor-General
Who does QAO audit?
QAO's primary client is the Parliament of Queensland. The Financial Accountability Act 2009 provides for accountability in the administration of the State's finances, to provide for financial administration of all public sector agencies.
- Departments
- Statutory Bodies
- Government Owned Corporations
- Local Governments
- Aboriginal Councils and Island Councils
- Controlled entities of the above.
Who decides what will be audited?
The Auditor-General is legally obliged to audit all public sector entities in each financial year and decide how best to conduct each audit.
The Legislative Assembly, by resolution, may also request the Auditor-General to conduct an audit of a matter relating to the financial administration of a public sector entity and the Auditor-General must conduct that audit.
The Auditor-General may also audit an entity that is not a public sector entity at the request of a Minister or a public sector entity (these are called by-arrangement audits).
Who checks that QAO is performing audits correctly?
The QAO Audit Policy and Quality section monitor work processes and outputs for quality assurance
The processes by which the quality of QAO's audits is managed include:
- systematic maintenance of audit and other manuals to keep pace with professional auditing standards and principles of better practice;
- regular line management and internal peer review of audit work performed by QAO staff and contract auditors;
- external review of management policies and audit work performed by QAO staff and contract auditors;
- assessment of staff performance including professional competence; and
- training and professional development.
Who audits the QAO?
QAO is subject to independent external audit that is performed by a private firm appointed by the Governor in Council.
The QAO also has an internal audit function which is performed by a private firm appointed by the Auditor-General. The internal audit function operates under its own charter which sets out the purpose, authority, scope and responsibility of the function.
The annual audit plans are reviewed by the QAO Audit and Risk Management Committee and are approved by the Auditor-General. The scope of the internal audit covers operation, financial, compliance and operational matters.
Contract Auditors
Who are the private contractors that QAO uses to perform audits?
The Auditor-General engages suitably qualified and experienced persons to perform work on a contractual basis.
Contracting considerations include:
- available resources and skills within QAO;
- nature, complexity and location of audits; and
- specialist skills or knowledge that can be provided by contract auditors.
Contractors may be assigned to audits of entire entities or for functional areas (e.g. taxation, payroll system, regional offices) of large audits undertaken by QAO staff.
The contract auditor and each staff member assisting the contract auditor on the audit must observe the confidentiality provisions prescribed.
Audit work performed by contract auditors is quality reviewed to ensure that it has been performed in accordance with the Guidelines for Contract Auditors, QAO Auditing Standards, the Australian Auditing Standards and other guidance from the professional bodies and directives of the Auditor-General.
In accordance with professional Auditing Standards and QAO policy, contract auditors must maintain their own quality review system including appropriate supervision processes established in their staffing structure.
Registered individuals who cannot demonstrate a continuing satisfactory level of internal quality assurance or performance in accordance with QAO policies may have existing contracts terminated and be removed from the list of pre-qualified suppliers.
Audits and how they are reported
How can I find out about the results of an audit?
QAO regularly reports results of audits to Parliament which are available to the public. Independent audit reports are included with financial statements in the entitys’ annual reports
Copies of the Auditor-General's Reports to Parliament can be obtained from this website or by contacting QAO on (07) 3149 6000 or at qaopublications@qao.qld.gov.au
How many reports does the Auditor-General produce each year?
The number of Reports to Parliament may vary from year to year. During 2010, the Auditor-General published thirteen Reports to Parliament.
What's the difference between a modified and unmodified audit opinion?
The Auditor-General is required to express a formal opinion (independent audit report) on the financial statements of public sector entities audited. The format of the independent audit report issued is consistent with the requirements of the Australian Auditing Standards and legislative requirements.
The audit opinions included in the independent audit report will be one of the following types:
Unmodified Audit Opinion
These opinions are issued where the financial statements give a true and fair view and the entity has complied with all relevant prescribed requirements.
Modified Audit Opinion
There are four different types of modified opinion that can be issued:
- Emphasis of Matter – these opinions are issued in limited circumstances where the auditor wishes to highlight a matter affecting the financial report and which is included in a note to the financial statement which more extensively discusses the matter. This modification does not affect the auditor’s opinion.
- Qualified audit opinion – these will be issued where there exists a scope limitation, a disagreement between the auditor and those charged with governance or a conflict between applicable reporting frameworks which cannot be resolved and which the auditor considers is material but not extreme.
- Disclaimer opinion – issued where the possible effect of a limitation on scope is so material and pervasive that the auditor has been unable to gather sufficient appropriate audit evidence to enable the auditor to express an opinion on the financial statements.
- Adverse opinion – issued when the effect of a disagreement or a conflict between applicable financial reporting frameworks is so material and pervasive to the financial report that the auditor considers a qualified opinion would be insufficient.
*Downloadable documents on this page may be in a Portable Document Format (PDF) format. To open them you may need to download free Adobe Reader from the Adobe website.
Last updated 3rd May 2012