AGO considers factors such as materiality of public funds managed by the statutory boards and the number of years the statutory boards have not been audited by AGO.

AGO aims to audit the larger statutory boards at least once every five years and other statutory boards at least once every seven years.

The law requires the Minister to consult the Auditor-General when he appoints an auditor for a statutory board. The Auditor-General will not object to the Minister's choice of auditor if certain qualifying criteria are met. Commercial auditors auditing statutory boards follow national accounting and auditing standards.

AGO charges a fee for auditing the accounts of statutory boards because this is provided by law and the fee goes into the Government Consolidated Fund. The fee quantum is approved by the Minister for Finance.

Compliance with legislated financial reporting standards per se does not necessarily result in financial statements that are true and fair. In forming an audit opinion, AGO will also assess the appropriateness of accounting policies adopted by the statutory board and the adequacy of its disclosures so as to determine whether the financial statements do show a true and fair view of its financial position and results.

For example, if a statutory board chooses not to disclose certain transactions (even if allowed under the financial reporting standards) and AGO assesses that these non-disclosures had materially affected the financial statements, AGO will issue a modified or a qualified audit report depending on the severity of the non-disclosure. This is consistent with the requirements of the Singapore Standards on Auditing.

Government-owned companies are governed by the Companies Act and are audited by commercial auditors. AGO may audit a government-owned company if the company requests for it and the Minister for Finance consents to the audit, or if the Minister directs AGO to carry out the audit in the public interest.

Under the Constitution of the Republic of Singapore, the Auditor-General has the duty to inform the President of any proposed transaction by the Government which, to his knowledge, is likely to draw on reserves which were not accumulated during its current term of office. In addition, if AGO observes any non-compliance with the laws in relation to protection of reserves in its audit, this will be reported.

For the audit of financial statements, AGO uses the Singapore Standards on Auditing (SSA) issued by the Institute of Certified Public Accountants of Singapore which are also applicable to commercial auditors.

AGO has a Quality Assurance Framework (QAF). This AGO QAF comprises systems, structures, policies and procedures that are designed to provide reasonable assurance that the audits done by AGO meet recognised professional standards.

The AGO QAF comprises the following elements:

Leadership which sets out AGO's vision and mission, enabling legislation, core values, organisation structure and decision-making bodies, and professional standards adopted. It also lays down the AGO Pledge and AGO Code of Conduct and Ethics which AGO auditors must abide by.

Human Capital which sets out the management policies and procedures to attract, retain, motivate and develop a high calibre workforce in order that AGO has staff with the professional qualification, technical competence and capabilities to carry out their work well.

Managing Audits which deals with the application of auditing standards in AGO audits from start to finish, including communicating the results of audit in management letters and reporting summaries of selected audit findings in the annual Report of the Auditor-General to the President and Parliament.

Monitoring and Policy Reviews which are to provide reasonable assurance that AGO is complying with professional standards and its core values. It covers mechanisms such as internal reviews of audits conducted and benchmarking to help ensure quality and continuous improvement throughout the whole organisation.

No. Information requested by AGO for audit within its legal mandate must be produced. The law (Audit Act) empowers the Auditor-General to have access to all information he requires for the discharge of his duty.

If information requested for an audit is not released to AGO, the non-disclosure of information may be reported in the Auditor-General's report to the President and Parliament. The financial statements of the auditee, if affected, may also be qualified.

Where an auditee has concerns on the release of a particular piece of information (e.g. highly classified information), he should explain such concerns in writing to AGO. Where appropriate, arrangements could be made to restrict access to the information to a more senior AGO officer, including the Auditor-General in person if necessary.

The procedure for this is embodied in an AGO-Auditee Protocol issued to all ministries and statutory boards on commencement of an audit.

No. There is no duplication of work as the roles of AGO vis-a-vis the IAU are different. IAU is a tool of management and its reports generally stop at management and/or an Audit Committee. The AGO, however, provides an external and independent perspective through its audits and reports to the President and the Parliament.

As part of its audit planning, AGO obtains information on management reviews and internal audits carried out or to be carried out by ministries and statutory boards. This helps AGO to avoid any unnecessary repeat of an audit observation. However, AGO may review specific issues which in its view have not been fully addressed in the internal audit.

Non-compliances with procedures are signs of weak internal controls. Reporting of such observations serves to raise awareness of the need for effective internal controls. Small lapses, if regarded as trivial and allowed to perpetuate, would lower the standard of governance in the public sector. They could lead to material errors or be exploited resulting in significant loss of public moneys.