The Auditor-General is an independent officer of the Parliament with a mandate established by legislation. The Australian National Audit Office (ANAO) assists the Auditor-General to deliver reports under the Auditor-General’s mandate and in accordance with the Auditor-General Act 1997 (the Act), the Public Governance, Performance and Accountability Act 2013 (the PGPA Act) and the Public Service Act 1999. The purpose of the ANAO is to support accountability and transparency in the Australian Government sector through independent reporting to the Parliament, and thereby drive improvements in public sector performance.

Under the Act, the Auditor-General’s functions or powers include:

• annual financial statements audits of Commonwealth entities, Commonwealth companies and their subsidiaries, including the audit of the Australian Government’s consolidated financial statements;
• conducting performance audits, assurance reviews and other reports of Commonwealth entities and Commonwealth companies and their subsidiaries;
• auditing annual performance statements of Commonwealth entities on request, in accordance with the PGPA Act; and
• at any time, causing a report to be tabled in either house of the Parliament on any matter.

The Auditor-General must have regard to the audit priorities of the Parliament, as determined by the Joint Committee of Public Accounts and Audit (JCPAA), when exercising the functions or powers under the Act.

The ANAO also supports the Parliament through briefings, appearances at parliamentary committees and other activities.

As a key component of the accountability and integrity framework, Australian Government entities are regularly subject to the Auditor-General’s functions, with the Auditor-General Act 1997 establishing the framework for engagement with the ANAO.

The Auditor-General publishes an annual audit work program (AAWP) in July each year. The program is designed to reflect the ANAO’s audit strategy and inform the Parliament, government entities and the public of the planned audit coverage for the Australian Government sector. As an independent officer of the Parliament, the Auditor-General has discretion in performing the functions or exercising the powers under the Auditor-General Act 1997 and may at any time explore additional areas of audit interest beyond those published in the annual audit work program, in response to emerging risks, parliamentary priorities or other developments.

The annual audit work program is also designed to anticipate and respond to current and emerging risks and challenges impacting on public administration. It complements the ANAO’s primary strategic planning document, the corporate plan.

The 2026–27 AAWP gives particular emphasis to areas identified by the Auditor-General as priorities for audit coverage: large areas of government expenditure and revenue; value for money and delivery of outcomes; the effective use of and preparedness for digital technologies; and efficiency in public administration.

Changes to the 2026-27 Annual Audit Work Program

The Australian National Audit Office (ANAO) is transitioning to an integrated, multi-year audit work program, providing greater visibility of potential audit activity in the forward years. Audit topics are grouped into those that may commence in 2026–27 and those that may commence in the 2027–29 period. The Auditor-General has full discretion in determining audit priorities and initiating audit activity, including on matters not identified in this program, in response to emerging risks, parliamentary priorities or other developments.

The topics outlined represent a program of potential audits and assurance activity drawn from ANAO planning processes, environmental scanning and stakeholder input. They are intended to signal areas of emerging risk, parliamentary interest and public sector priority, while supporting agile prioritisation as circumstances evolve. As such:

• not all topics will proceed to audit;
• new topics may be added; and
• final selections will be made in accordance with the Auditor-General’s mandate and priorities.

While most topics are framed as potential performance audits, the selection of audit topics is product agnostic. Topics may therefore be addressed through other ANAO products where appropriate, including financial statements audits and performance statements audits. This approach supports flexible, risk-based decisions about the most suitable audit methodology for each topic.

The ANAO develops the annual audit work program through the process outlined in Figure 1, and is guided by the following objectives:

• having regard to the audit priorities of the Parliament of Australia as determined by the JCPAA along with any reports of the JCPAA;
• providing a balanced program of activity that is informed by risk, and promotes accountability, transparency and improvements in public administration;
• following up on past recommendations and identifying trends for improvement, or declines in performance across government; and
• applying all of the Auditor-General’s mandate.

Figure 1: Annual audit work program development process

1. Environmental scan

The ANAO continually monitors developments in the Australian Government sector to develop a comprehensive understanding of activity and trends in the sector and risks to the achievement of government and legislative objectives, including through analysis of budget decisions. The ANAO also maintains an awareness of the Parliament’s interests throughout the year, including through monitoring of chamber debates and motions, parliamentary committee inquiries, and interactions with Members of Parliament through briefings on request.

The review of trends and risks in the sector involves examination of public and entity-held information gathered through the ANAO’s interaction with entities and stakeholders including, during performance, performance statements and financial statements audit work and through the attendance of ANAO staff at entity audit committee meetings.

The ANAO’s environmental scan identified key considerations and risks across government activities driving the 2026–27 work program, as outlined below.

Governance

• Compliance with legislation and APS Frameworks to ensure the proper use and management of public resources (efficient, effective, ethical and economical use).
• Management of risk during implementation of new policy measures and change management processes.
• Oversight of the delivery of major projects and transition initiatives.
• Governance of complex shared responsibilities both with other government entities and with non-government stakeholders, including third-party service providers.
• Compliance with reporting requirements under the sustainability reporting framework and assurance regime.
• Governance of workforce and culture management to maintain staff capacity and capability and achieve targets set out in entity corporate plans.
• Governance of ICT systems, including artificial intelligence, to support cyber resilience, systems integrity and secure information management.
• Maintenance of complete, accurate and accessible records to support transparency, accountability and decision-making.

Service delivery

• Development of implementation plans to support the timely achievement of desired outcomes and improved citizen experience.
• Coordination of complex citizen-centric service delivery where responsibilities are shared with states, territories or providers.
• Workforce planning, systems and training to achieve greater efficiency and accuracy in the delivery of services, including complaints management and payments.
• Oversight of services delivered through third parties and activity coordination with other government entities to assess systems of third-party accountability.
• Equity, accessibility and timeliness, to assess whether services reach the people intended.

Grants administration

• Grant design, selection and administration that demonstrate alignment with government priorities, program objectives and the proper use of public resources.
• Compliance with the letter and intent of the Commonwealth Grants Rules and Guidelines, including transparent, equitable and well-documented decision-making.
• Effectiveness, efficiency and assurance of grant program management through grants hubs and other third parties.
• Use of evidence, performance information and evaluation to assess whether grant funding is achieving intended outcomes and delivering value for public money.
• Integrity, probity and conflict-of-interest management across the grant lifecycle, particularly where decisions involve discretion, targeted funding or high public interest.

Procurement

• Demonstrating value for money, particularly by maintaining open competition and transparent decision making throughout procurement processes.
• Market stewardship and competition such that procurement practices maintain healthy supplier markets, reduce over-reliance on incumbents and support genuine contestability.
• Management of integrity risks, including probity, ethics and conflict of interest, to support public confidence in procurement outcomes and the proper use of public resources.
• Fit-for-purpose contracts and effective contract management arrangements are in place to achieve value for money, including whether entities actively manage whether suppliers deliver what was contracted.
• Effective assurance arrangements underpinning procurement processes that provide accountable authorities with confidence that procurement risks, controls and decisions are being actively managed and monitored across the procurement lifecycle.
• Compliance with the letter and intent of the Commonwealth Procurement Rules, including proportionate use of limited tender or panel arrangements.

Policy development

• Use of evidence, data and evaluation insights in the decision making of the policy development process.
• Meaningful consultation with affected communities, delivery partners, states and territories, and cross-portfolio stakeholders to strengthen policy design and legitimacy.
• Integration of performance measurement, evaluation planning and benefits realisation into policy design so that impact, value for money and intended outcomes can be assessed over time.
• Governance arrangements that support clear accountabilities, risk ownership and coordinated decision-making where policy responsibilities are shared across portfolios or jurisdictions.

Regulation

• Compliance with procedural and legislative requirements that support achievement of policy intent.
• Use of risk-based approaches and data informed approaches when designing, implementing and assessing compliance, enforcement, assurance and performance measurement activities.
• Delivery of proportionate and timely responses to non-compliance, including fraud.
• Monitoring and reporting on performance of compliance activities.
• Governance, probity and transparency in the administration of regulatory functions.

Asset management and sustainment

• Maintenance and sustainability planning tailored to the nature, use and life cycle of the assets and aligned to government priorities, service delivery needs and long-term capability requirements.
• Stewardship of specialist, high-value or nationally significant assets, including robust stock take, capitalisation, impairment and valuation processes.
• Governance and assurance over major asset transformation and modernisation programs, including ICT assets.
• Development of targets for risk-based asset management strategies with effective monitoring and reporting arrangements.

Financial management

• Quality of financial governance, controls and assurance arrangements that support the proper use of public resources, transparent decision-making and reliable financial reporting.
• Application of judgement and appropriateness of assumptions for the calculation of costs and liabilities.
• Appropriate governance and management of investments based on effective internal controls and sound judgment.
• Reliability, transparency and explainability of complex valuation methods and models used to derive the value of Commonwealth investments in portfolio entities.
• Financial sustainability and affordability of major programs, commitments and delivery models, including whether entities have credible information to manage cost pressures and future funding risks.

Performance management

• Quality of performance planning, measurement and reporting arrangements that demonstrate whether entities are achieving intended outcomes, using resources effectively and delivering public value.
• Alignment between corporate plans, portfolio budget statements, annual performance statements and internal management reporting, so that entities measure what matters and report consistently on public value.
• Use of evaluation, data analytics and lessons learned to assess impact, improve program design and strengthen delivery over time.
• Governance over performance information, including assurance, risk management and accountability for the quality of reported results.

Cross-cutting themes

The ANAO has identified instances where implementation of procurement arrangements fall short of reasonable standards. This puts at risk the reputation of the public service and the achievement of value for money which is a core principle of the Commonwealth Procurement Rules.

Governance is the foundation for Australian Government entities to demonstrate effective public administration. ANAO audits have shown that there is often a focus on the creation of probity controls without monitoring or reviewing arrangements to ensure compliance. This leads to a lack of transparency and accountability over decision-making that impacts effectiveness and value for money.

These matters are related to the promotion within entities of an ethical culture that supports compliance with mandatory requirements and good practice. These requirements include financial (such as procurement) and non-financial requirements (such as reporting and record-keeping), of which compliance is essential for government accountability, sound decision-making, responsive service delivery, and the proper use of resources. An ethical culture is one that focuses on compliance with both the letter and intent of requirements.

As part of the APS value of stewardship, government entities are responsible for developing, implementing and reviewing whole-of-government frameworks to ensure they are fit-for-purpose, effectively implemented and achieving policy outcomes over time. ANAO audits have identified that stewardship arrangements can lack clear accountability, active oversight and coordinated support for entities, reducing the ability of frameworks to adapt to emerging risks, drive consistent implementation and sustain public value across the sector. 

Lawfulness is a fundamental element of effective public administration and government accountability. Australian Government entities must ensure programs and decisions comply with legislation and legal obligations. ANAO audits have identified weaknesses in governance and legal risk management that can increase the risk of unlawful decision-making. Ensuring that administrative actions are supported by appropriate legal authority is essential to maintaining public trust and supporting the proper use of public resources.

Australian Government entities must ensure the delivery of services to the public is efficient, effective, economical and ethical. ANAO audits have identified shortcomings in service delivery and policy implementation where governance, planning, capability and performance monitoring have not been sufficient to manage delivery risks, respond to user needs or demonstrate sustained public value. 

Australian Government entities deliver a wide range of digital services to the Australian community. Australian Government entities also hold increasingly large volumes of data, some of which is highly sensitive, within information communications technology (ICT) systems and across their networks. Weaknesses in ICT system controls can expose entities to an increased possibility of unauthorised access to systems and data, or data leakage and can pose significant business risk to the security and environment of operations. Maintaining the security of ageing government ICT systems, networks and data will support Australia’s social, economic and national security interests, as well as the privacy of its citizens.

The Australian Government is increasing its technological capabilities through investing in Artificial Intelligence (AI). AI has the potential to support public sector entities to drive efficiencies to improve service delivery and more effectively deliver on their purposes. There are also significant risks inherent in the use of AI including the risk of bias, lack of transparency and accountability, privacy, security and legality. ANAO audits identified deficiencies in Australian Government entities’ data management governance arrangements that are fit for purpose for AI. The Australian Government has identified malicious cyber activity as one of the most significant threats affecting government entities, businesses and individuals. ANAO audits have identified low levels of compliance with mandatory cyber security requirements under the Protective Security Policy Framework. 

An effective system of measuring and reporting performance based on risk is essential if government is to achieve its policy goals in a way that is transparent and accountable. It enables Parliament and the public to hold Australian Government entities accountable for the proper use of public resources and regulatory powers, and for the effectiveness of their service delivery. Effective performance measurement allows entities to assess their outcomes and the impact of their programs and services on outcomes. It also supports entities to improve data quality and data analytic and evaluation capability. ANAO audits have found that while there is evidence that entities are taking steps to improve their performance reporting, ongoing improvement will require continued investment by entities to build capability and capacity to improve the quality of performance reporting to the Parliament.

2. Topic development

Risks and audit priority areas identified during the environmental scan were developed into potential topics. The development of these topics is guided by six key considerations.

• Risk: both financial and non-financial risk at the whole-of-system, portfolio and individual program levels.
• Impact: possible benefits that will flow from audit coverage, including improved transparency, administrative effectiveness, greater efficiency, improved performance, and key learnings and insights for the sector as a whole.
• Importance: the criticality of the effective and efficient delivery of the proposed topic to key stakeholders, including the Parliament.
• Materiality: the significance of the program in terms of the value, dependence and citizen reach, and the extent to which the program contributes to the broader objectives of government, or to changing or influencing decisions.
• Auditability: the extent to which the area of proposed audit coverage is able to be audited, with consideration for factors such as: the Auditor-General’s mandate; the availability of an appropriate audit methodology and product; quality and accessibility of material for analysis; and the clarity of existing frameworks and requirements to audit against.
• Previous coverage: the extent to which the area has been subject to previous audit coverage or other recent reviews and inquiries, including by the Parliament.

3. Consultation

The annual audit work program is part of the ANAO’s strategic planning framework and is guided by commitments the ANAO has made to the Parliament in its portfolio budget statements and corporate plan. A draft annual audit work program is provided to the Parliament for consultation on the audit priorities of the Parliament, through the Joint Committee of Public Accounts and Audit (JCPAA). The JCPAA may seek input from other parliamentary committees to develop a consolidated response on the audit priorities of the Parliament. The ANAO also invites feedback from accountable authorities of Australian Government entities affected by the proposed audit coverage, the Commonwealth Ombudsman, the Inspector-General of Taxation, the Inspector-General of Intelligence and Security, the Office of the Australian Information Commissioner, the Inspector-General of Aged Care, the National Anti-Corruption Commission, First Nations stakeholders and members of the public.

In the development of the 2026–27 AAWP:

• 13 audit priorities of the Parliament were identified by the JCPAA; and
• 53 entities were consulted with 36 responses received.

4. Coverage review

The ANAO reviews the topics to assess the extent to which the annual audit work program would appropriately cover Australian Government portfolios and entities, the range of activities undertaken within portfolio entities, the maturity of program/activity delivery, and how the potential audits align with the objectives of the PGPA Act, which include the proper use and management of public resources. The ANAO seeks to ensure that coverage across the program is proportionate to risk and reflects an appropriate load across the public sector.

Portfolio coverage

Audit coverage across portfolios is tailored to the level of Australian Government budget commitments, the breadth of responsibilities within entities, and risks to the achievement of government and parliamentary objectives.

Activity coverage

To ensure that the annual audit work program has an appropriate spread of coverage across portfolio responsibilities, the topic list is reviewed against a range of key public administration activities. These activities include governance, service delivery, procurement, regulatory activities, grants administration, asset management and sustainment, and policy development.

Audit objective coverage

Subsection 15(1) of the PGPA Act provides that the accountable authority of a Commonwealth entity must govern the entity in a way that promotes the proper use and management of public resources. The PGPA Act defines ‘proper’ as efficient, effective, economical and ethical. All entities are also obliged to comply with relevant legislative requirements, and non-corporate Commonwealth entities must be governed in a way that is not inconsistent with the policies of the Australian Government.

Stage-of-delivery coverage

Australian Government programs and activities present a variety of risk profiles related to their stage of maturity. The annual audit work program is reviewed to provide assurance that potential topics cover an appropriate range of programs and activities across different stages of implementation maturity. Audits of programs in the design, standing up and early delivery phases enable insights that assist the implementation, mature delivery and completion stages. Audits of programs at the mature delivery stage aim to provide findings directed towards assurance, evidence collection, lessons learned for future programs and delivery of objectives.

Thematic perspective

The ANAO considers the extent to which potential topics collectively reflect broader areas of focus and the Auditor-General’s priority focus areas for audit coverage. These may include cross-cutting themes such as service delivery to citizens, public sector capability, governance and integrity, national sovereignty considerations, and the use and management of digital technologies and environmental risks.

Themes are not assigned to all topics and, where applied, a topic may align to more than one theme. Together, these perspectives support an understanding of how the proposed program addresses common pressures and priorities observed across the public sector.

5. Program finalisation

Following the coverage review, the annual audit work program is finalised and published on the ANAO’s website.

Figure 2 provides an overview of the proposed 2026–27 program by Australian Government portfolio. Portfolio coverage reflects the breadth of government responsibilities, areas of significant expenditure and revenue, and risks to the achievement of government and parliamentary objectives.

Some topics may involve more than one portfolio or entity, including cross-entity audits and audits of shared responsibilities, systems or programs. Cross-entity topics are presented separately and are not duplicated across individual portfolios. Cross-entity audits may include any relevant Australian Government entities, depending on the scope of the audit. Topics involving more than one portfolio are reflected in each relevant portfolio. Accordingly, portfolio totals may not align with the overall number of proposed topics.

Figure 2: Portfolio coverage 2026–27

Figure 3 outlines the spread of proposed audit coverage across key areas of public administration activity, including governance, service delivery, grants administration, procurement, policy development, asset management and sustainment, and regulatory activities. This provides a view of how the program addresses different types of public sector responsibilities and risks.

Figure 3: Activity coverage, 2026–27

Figure 4 outlines proposed audit objective coverage across the PGPA Act concepts of efficiency, effectiveness, economy and ethics. This lens supports consideration of whether proposed audit activity addresses the proper use and management of public resources.

Figure 4: Audit objective coverage 2026–27

Note: Number of potential topics based on the primary objective of economy, efficiency, effectiveness or ethics.

The annual audit work program has been designed to capture the variety of public administration challenges related to programs and activities during the stages of design, standing up, early delivery, mature delivery and after completion.

Figure 5 outlines the stage of implementation coverage in the 2026–27 program.

Figure 5: Stage of implementation coverage, 2025–26

To complement the portfolio, activity, stage of implementation and audit objective views, the program also includes additional perspectives on coverage, including alignment with the Auditor-General’s priority focus areas and the distribution of topics across selected themes.

These perspectives provide a cross-cutting view of how the proposed program responds to key risks and priorities across the public sector. Focus areas and themes are not assigned to all topics and, where applied, individual topics may align to more than one focus area or theme.

Figure 6 and Figure 7 outline these perspectives.

Figure 6: Auditor-General priority areas of focus

Note: *This includes where a component of the audit has a focus on efficiency.

Figure 7: Cross cutting themes

Key features of the Annual Audit Work Program 2026–27

The Annual Audit Work Program 2026–27 outlines the program of audit and assurance activity across the Auditor-General’s mandate, integrating mandated financial statements audits with potential performance audits, performance statements work, assurance reviews and other reports. Key focus areas of the program include:

• the key accountabilities as outlined in the Public Governance, Performance and Accountability Act 2013 including efficiency, effectiveness, economy and ethics;
• large areas of government expenditure and revenue, including payments administered by Services Australia, tax collections, National Disability Insurance Scheme reforms, and major Defence capability and infrastructure investments;
• value for money and delivery of outcomes, including through significant government procurement activities, grants program administration and major government investments;
• efficiency in public administration, including tax revenue, visa processing, workforce deployment and grants administration;
• effective delivery of services to the Australian public;
• entity implementation of agreed recommendations made by parliamentary committees and the ANAO, supporting improved performance and accountability;
• compliance with government legislation and policy frameworks;
• the effective use of and preparedness for digital technologies, including cyber security, artificial intelligence, data governance and business-critical ICT systems controls.

6. Audit selection

During the period of the annual audit work program, the Auditor-General will determine which audits will commence, taking account of:

• the audit priorities of the Parliament;
• evolving strategic risk; and
• achieving sufficient breadth and depth of audit coverage across the publics sector.

The Auditor-General also considers any recent developments in the public sector, areas of significant public interest, opportunities to demonstrate good practice in public administration and accountability, resourcing, and requests for audit. Suggestions for audits by parliamentary committees, parliamentarians and others also inform audit selection within the program.

Prior to commencing an audit, the allocated audit team will develop an audit work plan including the proposed audit scope, timeframe and budget, and review strategic and operational risks specific to the audit.

7. Delivering against the annual audit work program

Once an audit product is completed and approved by the Auditor-General, the relevant product can be tabled in the Parliament of Australia. The product is also published on the ANAO website. Additionally, the ANAO shares key lessons from performance audits in other audit reports and Insights products.