Audit Act 1995

This Act may be cited as the Audit Act 1995.

This Act shall come into operation on the commencement of the

Financial Management Act 1995.

In this Act:

Acting Auditor-General means a person appointed under section 10.

audit includes the inspection, investigation, examination or review of accounts and systems.

Auditor-General means the person appointed under section 4 as the Auditor-General.

Auditor-General's Office means the Agency of that name specified in Schedule 1 to the Public Sector Employment and

Management Act 1993.

Australian parliament means:

the Legislative Assembly; or

the Parliament of the Commonwealth or a State; or

the parliament or legislature of another Territory.

authorised auditor means a person authorised or appointed under section 17 by the Auditor-General to perform an audit.

by notice means by written notice.

company means a company within the meaning of the

Corporations Act 2001.

eligible person, see section 4A(1).

executive officer, in relation to a Territory controlled entity that is a company, means a director or other person who is concerned with, or takes part in, the management of the company.

organisation includes a body but does not include a

Territory controlled entity.

prescribed officer:

of an Agency – means the Accountable Officer of the Agency; or

of a Territory controlled entity that is a company – means an executive officer of the company; or

of a Territory controlled entity other than a company – means a person who is concerned with, or takes part, in the management of the entity.

prescribed requirements means requirements prescribed by or under this Act or the Financial Management Act 1995.

Treasurer's Annual Financial Statement means the statement prepared annually by the Treasurer in accordance with section 9 of the Financial Management Act 1995.

Territory controlled entity means either of the following entities if the entity's receipts and expenditures are not kept as part of the Public Account:

a company that is an entity controlled, within the meaning of the

Corporations Act 2001, by an Agency or otherwise by the Territory;

an entity (other than a company or an entity established under an

Act) controlled, within the meaning of the Australian Accounting

Standards, by an Agency or otherwise by the Territory.

Where a word or expression used in this Act is not defined in this Act but is defined in and for the purposes of the Financial

Management Act 1995, then, unless the contrary intention appears, that word or expression has the same meaning in this Act as it has in the Financial Management Act 1995.

Note for subsection (2)

Words and expressions used in this Act and defined in the Financial Management Act 1995 include

Division. Such a context might be under section 13(3)(a).

Part 2 Auditor-General

There is to be an Auditor-General.

The Administrator may appoint an eligible person to be the

Auditor-General.

The appointment may be made only after receiving a recommendation of the Legislative Assembly.

The Minister must table a copy of the appointment in the

Legislative Assembly within 6 sitting days after the appointment is made.

A person is an eligible person for appointment as the Auditor-General if:

the person has suitable qualifications or experience relating to the Auditor-General's functions; and

the person is committed to the purposes of this Act and its underlying principles; and

the person is not any of the following:

a judicial officer;

a member of an Australian parliament;

a member of a local government council or of an equivalent body in a State or another Territory;

a member of a political party;

a prescribed officer of a Territory controlled entity; and

the person does not have a recent political affiliation.

For subsection (1)(d), a person has a recent political affiliation if, at any time during the previous 5 years, the person:

was a member of the Legislative Assembly or a local government council; or

was an office holder or elected representative of a political party in the Territory or elsewhere in Australia; or

was a member of staff of a minister; or

made a reportable donation to a political party, or an associated entity of a political party, in the Territory or elsewhere in

Australia.

For subsection (2)(d), a person made a reportable donation if it was made by the person or by a body corporate of which the person was an office holder or majority shareholder at the time the donation was made.

In this section:

reportable donation means a gift or loan that is required to be disclosed or reported under Part 10 of the Electoral

Act 2004 or under a similar law in force in the Commonwealth or in a State or another Territory.

The appointment of a person as the Auditor-General is for a period of 5 years.

A person who is the Auditor-General may be reappointed, if still eligible, for one further period of 5 years.

The Auditor-General holds office on the conditions, including conditions about remuneration, expenses and allowances, determined by the Administrator.

The Auditor-General's conditions of office:

cannot provide any conditions (for example as to remuneration) that are contingent on the Auditor-General's performance in office;

and

cannot be varied to the detriment of the Auditor-General during the Auditor-General's term in office.

Subsection (2) does not prevent the Inspector under the

Integrity and Ethics Commissioner Act 2025 from conducting an evaluation or dealing with a complaint in relation to the

Auditor-General under that Act.

The salary and any annual allowance, and such other allowances, as the Administrator determines under section 4C must be paid by the

Territory at such rate as the Administrator so determines, and the appropriation for that purpose is hereby established or increased to the extent necessary.

Subject to section 4C, the Minister may grant leave of absence to the

Auditor-General.

The office of Auditor-General becomes vacant if:

the Auditor-General resigns under section 7A; or

the Auditor-General's appointment is terminated under section 7B;

or

the Auditor-General is found guilty of an offence, whether in the

Territory or elsewhere, for which the maximum penalty is imprisonment for a term of at least 12 months, with or without a fine; or

the Auditor-General is sentenced to imprisonment for an offence, whether in the Territory or elsewhere and whether or not the sentence is suspended; or

the Auditor-General becomes bankrupt, applies to take the benefit of a law for the relief of bankrupt or insolvent debtors, compounds with creditors or makes an assignment of remuneration for their benefit; or

the Auditor-General becomes a candidate for election as a member of an Australian parliament or a local government council; or

the Auditor-General is no longer an eligible person for appointment.

A decision, an act or an omission of the Auditor-General is not invalid only because of a defect in the appointment of the

Auditor‑General, including not being an eligible person for appointment.

The Auditor-General may resign office by written notice given to the

Administrator.

The Administrator may suspend the Auditor-General from duty:

if the Auditor-General becomes physically or mentally incapable of satisfactorily performing official duties; or

if the Auditor-General engages in corrupt conduct as defined in section 10 of the Independent Commissioner Against Corruption Act

2017; or

if the Auditor-General engages in paid employment outside the duties of office without the Minister's approval; or

if the Auditor-General is absent from duty, without the approval of the Minister and without reasonable excuse, for 28 consecutive days or for 42 days in any period of 12 months; or

on the ground of proved misbehaviour; or

on the ground of incompetence.

The Minister must immediately give the Auditor-General a statement of reasons for the suspension.

The Minister must table in the Legislative Assembly the statement and any written response by the Auditor-General within 6 sitting days after the suspension.

If, within 6 sitting days after the statement is tabled, a resolution of the Legislative Assembly is passed by a two-thirds majority of all of the Assembly requiring the Administrator to terminate the Auditor-General's appointment, the Administrator must terminate the Auditor-General's appointment.

The suspension of the Auditor-General is lifted if:

the Minister does not table the statement under subsection (3);

or

the Legislative Assembly does not pass a resolution in accordance with subsection (4).

The Auditor-General is entitled to be paid remuneration and allowances during the period of suspension.