Inquiry into Financial and Performance Audit of AG and VAGO 2010

Financial Audit of the Victorian Auditor-General's Office - Section 17 of the Audit Act 1994 (Vic) and the performance audit of the Victorian Auditor-General and the Victorian Auditor-General's Office - Section 19 of the Audit Act 1994 (Vic).

The Committee wishes to direct the successful tenderer to conduct the financial audit in accordance with the following legislative context and terms of reference.

The independent financial auditor’s role is to:

• conduct an audit of VAGO’s financial statements for the next three years beginning with the year ending 30 June 2010;
  
• form an opinion as to whether the financial statements of VAGO present fairly the financial position of the Office as at the end of each financial year and its financial performance and cash flows for each financial year in accordance with applicable Accounting Standards and other mandatory professional reporting requirements; verify that such statements comply with the financial reporting requirements of the Financial Management Act 1994, as amended, and relevant provisions of any successor legislation to that Act;
  
• form an opinion on the processes used by VAGO in the preparation of its accounts;
  
• conduct the audit in compliance with the Audit Act 1994, Australian Auditing Standards and professional reporting requirements;
  
• prepare an appropriate methodology for each year’s audit which may include risk-based principles, controls-based testing, analytical reviews, adequacy of financial reporting systems and other procedures to ensure a professional audit is undertaken in compliance with Australian auditing standards;
  
• meet on a regular basis with the VAGO Audit Committee to discuss, clarify and resolve issues and findings;
  
• consult as the independent auditor thinks fit with the Chair of the Committee and/or the Audit Sub-Committee of the Committee;
  
• evaluate the progress, adequacy and effectiveness of measures implemented by VAGO to address issues and recommendations that accompanied the previous financial year’s audit opinion;
  
• prepare a management letter and/or operations letter to VAGO; prepare as the auditor thinks fit, a report to Parliament that may include such information and such recommendations for the more effective, efficient and economic operation of VAGO; and
  
• submit to the Committee a report on the conduct of the independent financial audit including details of meetings with the Auditor-General and VAGO and auditing issues dealt with during the audit.