Oversight of Independent Statutory Roles-Is it time for more comprehensive codification? Des Pearson Former Auditor-General of Western Australia and Victoria

Speaking to paper Given that oversight is Non Negotiable – Oversight entirely appropriate – Should however be Relevant & Appropriate Used Auditor General Role as a case study

Key Considerations Nature and context of function – One size doesn’t fit all roles Approaches available and in use – Other jurisdictions – Private sector comparison Oversight shouldn’t compromise function

Nature & Context Auditor-General Role Focus is Resource Management & Administrative Systems-’Opinions Only’ Non Personal Well Developed Professional Standards, Methodology and Approach All ‘Work’ is Transparent – Reports tabled in Parliament

Approaches In Use Westminster System – UK, Canada & Australia Notable differences – Intensity of approach – Nature of approach Even across Australia Compared to ASIC approach

Conclusions Risk that Oversight Mitigates against Complementary Role – Oversight important, BUT – Follow –up is critical Scope for Conflict – Quality of consultation – ‘Judge & Jury’ v ‘Complete Independence’

Better Practice - 1 More Routine Oversight by Qualified Professional – Eg ANAO approach Approach cf ‘Performance Agreement’ – Clarity of expectations

Better Practice - 2 Leverage Complementary Role – Applied check of relevance and reliability of audit work – Provides a litmus test of quality of Audit – Parliamentary Follow-up of Audit reports is Critical

Better Practice - 3 Suggest ‘Oversight’ Role now has critical mass – Range of Independent Statutory Roles Possibly Warrants ‘Specialist’ Oversight Committee – Cross Membership for ‘Functional Familiarity’ – Separating Oversight from Follow-up should improve objectivity and mitigate risk of ‘intrusion’

The Way Ahead Regardless – Open Communication/Consultation is Key Understanding Operational Context, Professional Standards in Place, etc Regular engagement – Inform relationship Very Much ‘The How’ – Much is already within our control – Revolves around ‘approach’!!!

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