Public Finance and Audit Act 1987

If a public authority carries out its functions partly or wholly in partnership or jointly with another person or through the instrumentality of a body corporate or other person or by means of a trust the Chief Executive

The Auditor‑General may audit the accounts of a trustee, partner or other person (whether a body corporate or not) relating to functions carried out on behalf of, or in partnership or jointly with, a public authority or relating to functions carried out as the delegate or agent of a public authority, and may examine the efficiency, economy and effectiveness with which the body corporate, trustee, partner or other person carries out those functions.

If a public authority is the legal or beneficial owner of shares in a company and the company, or a subsidiary of the company, is the instrument used by the public authority to carry out some or all of its functions, the

the company in which the public authority owns shares;

the subsidiary of the company; and

the companies (if any) in a chain of holding companies and subsidiaries between the company referred to in paragraph (a) and the subsidiary.

If the Auditor‑General is entitled under subsection (3) to audit the accounts of a company that is the instrument used by a public authority to carry out some or all of its functions, the Auditor‑General may examine the efficiency, economy and effectiveness with which the company carries out those functions.

For the purposes of subsection (3)—

a company is the holding company of another if it is the legal or beneficial owner of shares in the other company;

a company is the subsidiary of another company if any of its shares are owned legally or beneficially by the other company;

a group of companies form a chain of holding companies and subsidiaries if they can be arranged in a line with each company being the holding company of the company following it in the line.

The Auditor‑General may audit the accounts of a company and examine the efficiency, economy and effectiveness with which it conducts its affairs if—

a public authority is the legal or beneficial owner of more than 40 per cent of the issued share capital of the company; and

the Treasurer has given his or her consent to the audit and examination.

The Auditor‑General must audit the accounts of a company referred to in subsection (6) and examine the efficiency, economy and effectiveness with which it conducts its affairs if requested to do so by the Treasurer.

This section—

is in addition to the provisions of any other Act or law requiring the accounts of a company or other body corporate to be audited;

is not in derogation of any such provisions.