Part 1: Introduction

Every public entity in New Zealand is subject to annual audit by the Auditor-General.

The annual audit is required by law so that Parliament can get assurance that each public entity is fairly reporting its performance and that public money is being spent as intended.

The Auditor-General’s role under the Public Audit Act 2001 (the Act) ensures that the annual audits and the assurance given to Parliament and the public are completely independent of government or politics.

In this document, we set out the processes that the Auditor-General uses to appoint auditors (Part 2) and to set audit fees (Part 3) in a way that is sound, fair, and transparent.