Role of the Director of Audit

Under Article 58 of the Basic Law

• A Commission of Audit shall be established in the Hong Kong Special Administrative Region. It shall function independently and be accountable to the Chief Executive.

Director of Audit is the auditor of the accounts of the Government of Hong Kong Special Administrative Region. Under the Audit Ordinance (Cap. 122), in the performance of his duties and the exercise of his powers under this Ordinance, the Director of Audit:

• shall have access to all records, books, vouchers, documents, cash, receipts, stamps, securities, stores and any other Government property in the possession of any public officer;
• may require any public officer to give such explanation, or to furnish such information, as the Director may think fit in order to enable the Director to discharge his duties; and
• shall not be subject to the direction or control of any other person or authority.

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 in April and October respectively.

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.

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