The Australian National Audit Office (ANAO) Corporate Plan is the ANAO’s key strategic planning document. It guides our operating environment and sets out how we will deliver on our purpose.

The Quality Assurance Framework and Plan complements the Corporate Plan. The ANAO Quality Assurance Framework is the system of quality control that the ANAO has established to provide the Auditor-General with reasonable assurance that the ANAO complies with the ANAO standards and applicable legal and regulatory requirements and reports issued by the ANAO are appropriate in the circumstances.

This Audit Quality Report demonstrates the ANAO assessment of the implementation and operating effectiveness of the elements of the ANAO Quality Assurance Framework. The report provides transparency in respect of the processes, policies, and procedures that support each element of the ANAO Quality Assurance Framework, and reports audit quality indicators measuring ANAO performance against target benchmarks.

This report also includes the achievement of the quality assurance strategy and deliverables set out in the Quality Assurance Framework and Plan 2020–21.

The ANAO Quality Assurance Framework is the system of quality control that the ANAO has established to provide the Auditor-General with reasonable assurance that the ANAO complies with the ANAO standards and applicable legal and regulatory requirements and reports issued by the ANAO are appropriate in the circumstances.

The Audit Quality Report demonstrates the ANAO assessment of the implementation and operating effectiveness of the elements of the ANAO Quality Assurance Framework. The report provides transparency in respect of the processes, policies, and procedures that support each element of the ANAO Quality Assurance Framework, and reports audit quality indicators measuring ANAO performance against target benchmarks.

This report also includes the achievement of the quality assurance strategy and deliverables set out in the ANAO Quality Assurance Framework and Plan 2019–20.

The Performance Statements Audit Services Group (PSASG) volume of the ANAO Audit Manual applies to the performance statements audit activity performed by PSASG.

The shared content volume of the ANAO Audit Manual applies to all assurance activity performed by the ANAO, including financial statements and performance auditing. The shared volume addresses key matters affecting compliance with the Auditor-General Act 1997 and other aspects of the ANAO’s legislative framework. It sets out the main requirements of the ANAO’s overall system of quality control in accordance with ASQC1 Quality Control for Firms that Perform Audits and Reviews of Financial Reports and Other Financial Information, Other Assurance Engagements and Related Services Engagements.

The Performance Audit Services Group (PASG) volume of the ANAO Audit Manual applies to the performance audit activity performed by PASG in collaboration with the Systems Assurance and Data Analytics (SADA) group. Relevant policies and guidance from the PASG volume are also applied to assurance reviews performed by PASG. Policies and guidance in the PASG volume address the planning, execution and reporting stages of the performance audit process.

This edition is intended for officials within government entities responsible for governance, internal audit or a government activity that may be the subject of an ANAO performance audit. The purpose of Insights: Audit Practice is to explain ANAO methodologies to help entities prepare for an ANAO audit.

The objective of the audit was to assess the effectiveness of Defence’s monitoring of the implementation of ANAO and internal audit recommendations. The audit also examined a sample of ANAO and internal audit recommendations—reported as being complete by Defence—to assess the extent to which these recommendations had been implemented by Defence.

Increased transparency and accountability on progress with major Defence equipment acquisitions has been a focus of parliamentary interest for some time. Beginning in 2007–08, an annual program has been established in conjunction with the Department of Defence to enable the ANAO to review and report to the Parliament on the status of major Defence acquisition projects, as set out in the Major Projects Report. The review includes information relating to the cost, schedule and progress towards delivery of required capability of individual projects as at 30 June each year, and is undertaken at the request of the Joint Committee of Public Accounts and Audit.

The audit objectives were to examine if:

• DCITA had effectively planned and administered the HiBIS and BC Stage 1 programs; and
• the programs had achieved their objectives.

The audit focused on DCITA's activities to support the planning, implementation, monitoring and reporting of HiBIS and BC Stage 1 programs.

The Australian National Audit Office (ANAO) publishes two reports annually addressing the outcomes of the financial statement audits of Australian government entities and the Consolidated Financial Statements (CFS) of the Australian Government, to provide the Parliament of Australia with an independent examination of the financial accounting and reporting of public sector entities. This report focused on the results of the interim audit phase, including an assessment of entities’ key internal controls, of the 2017–18 financial statements audits of a range of entities including all departments of state and a number of major Australian government entities.