Media statement - report 2 of 2026-27

Published: 26 Aug 2026

The follow-up review found thatgovernmentdepartments and agencies have made encouraging progress in strengthening governance arrangements, with many entities taking steps to improve the effectiveness of their internal audit functions and audit committees.

"I was pleased to see many departments respond positively to the findings of the original report," Mr Dean said, "with several departments introducing practices that were not previously in place."

Most departments now have approved internal audit charters in place, many have strengthened the links between internal audit plans and organisational risks and audit committee terms of reference more clearly define oversight responsibilities. There has also been increased recognition of the skills and expertise required to serve effectively on audit committees.

Despite this progress, the review identified opportunities to further improve governance arrangements across the public sector.

• strengthening quality assurance and improvement programs for internal audit functions
• increasing the use of independent external evaluations of internal audit
• ensuring audit committees regularly assess the skills and capabilities of their members
• enhancing the independence of audit committees in some departments.

"The results show that many of the necessary governance structures are now in place. The next challenge is ensuring those structures are regularly evaluated, challenged and continuously improved," Mr Dean said.

The Auditor-General also noted that audit committees continue to play an increasingly important role within government. During 2025-26, four agencies became subject to mandatory financial statement audits, requiring audit committees to oversee financial reporting and the external audit process in addition to their existing responsibilities for internal audit, risk management and internal controls.

As part of its commitment to improving public sector governance, the Northern Territory Auditor-General's Office intends to undertake more follow-up reviews of previous audit work.

"Follow-up reviews are an important accountability mechanism. They allow Parliament and the public to see whether recommendations result in meaningful change and whether agencies are achieving better governance outcomes over time," Mr Dean said.

The Auditor-General is a statutory position established under the Audit Act 1995.

The Auditor-General and the Northern Territory Auditor-General’s Office assist Parliament to hold government accountable for its use of public resources by providing independent audits.

Auditor-General’s Reports can be accessed online in the publication or go to the Library & Archives NT’s digital repository Territory Stories.

For more information contact:

Jara Dean (he/him/his)
Auditor-General
Phone: 08 8999 7155
nt.audit@nt.gov.au