To give effect to the provision of the Constitution, and assigning audit function to the AGSA as the Supreme Audit Institution (SAI), section 2 of the Public Audit Act 25 of 2004 (PAA) provides for the auditing of institutions and accounting entities in the public sector. Section 10(3) of the PAA provides for the establishment of an oversight mechanism to maintain oversight over the Auditor-General (AG). Therefore the Standing Committee on the Auditor-General (SCoAG) was established in 2006. The legislative mandate of the SCoAG is to assist and protect the AG in order to ensure the independence, impartiality, dignity and effectiveness of the Office of the Auditor-General; and to advise the National Assembly (NA) accordingly. Section 10(1) of the PAA requires that the AG must annually submit a report to the NA on his or her activities and performance of his or her functions including the annual report, financial statements and audit report on those statements. To assist with oversight, the audit committee is established in terms of section 40(6) of the PAA to oversee AGASA. Audit committee does not have any management responsibility. However, it assists the Deputy Auditor-General (DAG) in discharging his duties with regards to maintaining effective, efficient and transparent systems of financial management, risk management and internal controls. 1. Introduction