Inquiry into Financial and Performance Audit of AG and VAGO 2010

Financial Audit

Victorian Auditor-General's Office - Financial Audit 2010

 

Access the Tender Brief and Conditions here: pdf PDF 318.81 Kb

Questions received from interested tenderers

Question 1

Clarification on certain conflict of interest situations that may prohibit appointment:

(a) A current service provider of financial statement audits to VAGO?

(b)The firm being a current service provider of financial statements to VAGO but the nominated principle not being a VAGO service provider?

Answer
(a) Yes, this would constitute a conflict of interest situation which would prohibit appointment.

(b) The situation in itself, as outlined, would not constitute an impediment to an appointment of the principal. The appointee would be responsible for ensuring adherence to auditing standards and that no conflict of interest arises during an audit and throughout the term of the tender contract.

The answer to 1b) recognises that the principal, and not the firm, is the person appointed as financial auditor and the principal will be solely responsible for meeting the terms and conditions of the tender brief. It is also conditional on:

•the principal having no professional connection or involvement with VAGO currently and for the duration of the tender contract;
•the principal's nominated staff for the audit having no professional connection or involvement with VAGO currently and for the duration of the tender contract; and
•there will be compliance by the principal as appointed financial auditor with all other requirements in the tender brief.