Regularity audit

• is conducted with a view to providing the Legislative Council with an overall assurance that the Government's financial and accounting transactions and those of funds of a public or quasi-public nature are proper and that they conform to generally accepted accounting principles;
  
  

• is carried out under the terms of the Audit Ordinance, which provides for the appointment, tenure of office, duties and powers of the Director of Audit, for the submission of annual statements by the Director of Accounting Services, for the examination and audit of those statements by the Director of Audit, and for the submission of his report thereon to the President of the Legislative Council;
  

• is conducted in accordance with a programme of work determined annually by the Director of Audit;
  

• is performed using selective test checks and in-depth reviews on the systems of internal control operated by individual departments; and
  
  

• is intended to provide an overall assurance of the general accuracy and propriety of the Government's financial and accounting transactions;but
  
  

• is not intended to disclose each and every accounting error or financial irregularity.

In addition, the Director of Audit also reviews the accounts of the government-subvented organisations in Hong Kong and audits the accounts of

• the Hong Kong Housing Authority;
  


• more than 60 statutory and non-statutory funds; and
  
  
• five Trading Funds:
  
  
  • Companies Registry Trading Fund;
  • Electrical and Mechanical Services Trading Fund;
  • Land Registry Trading Fund;
  • Office of the Telecommunications Authority Trading Fund; and
  • Post Office Trading Fund.

Key performance measures in respect of regularity audit for 2008-09 are:

Statements rendered by the Director of Accounting Services are the Statement of Assets and Liabilities and the Statement of Receipts and Payments of the

• General Revenue Account;
• Capital Works Reserve Fund;
• Land Fund;
• Capital Investment Fund;
• Civil Service Pension Reserve Fund;
• Disaster Relief Fund;
• Loan Fund; and
• Innovation and Technology Fund.