Role of the Director of Audit

Under the Audit Ordinance (Cap. 122), the Director of Audit

• is the external auditor of the accounts of the Government of Hong Kong Special Administrative Region;
  
  
• has wide powers of access to the records of departments;
  
  
• can require any public officer to give an explanation and to furnish such information as he thinks fit to enable him to discharge his duties; and
  
  
• is not subject to the direction or control of any other person or authority in performing his duties and when exercising his powers under the Ordinance.
  
  

The Director of Audit submits three reports each year to the President of the Legislative Council:

• one on the Accounts of the Government of Hong Kong Special Administrative Region under section 12 of the Audit Ordinance in October; and
  
  
• two on the results of value for money audits:
  
  
  
  • which have been completed between March and September, to be submitted in October; and
    
    
  • which have been completed between October and February, to be submitted in April.

The Director's reports are considered by the Public Accounts Committee of the Legislative Council in accordance with the provisions of section 12 of the Audit Ordinance and Rule 72 of the Rules of Procedure of the Legislative Council.

The roles of the Director of Audit and the Public Accounts Committee complement each other. The Public Accounts Committee relies on the findings of the Director of Audit to conduct its public hearings and to issue the reports of the Public Accounts Committee. The Director of Audit's effectiveness is enhanced by the conclusions and recommendations of the Public Accounts Committee. Together, they play an essential part in the Government's financial accountability to the Legislative Council. For this purpose, the independent role exercised by the Director of Audit is crucial.

The Audit Commission has laid down auditing standards as a framework for the proper conduct of audits by audit staff. Compliance with the Audit Commission auditing standards ensures compliance, in all relevant and material respects, with the auditing standards issued by the International Organisation of Supreme Audit Institutions and the Hong Kong Institute of Certified Public Accountants.