Under section 8 of the CAC Act, the Auditor-General inspects and audits the accounts and records of the corporation’s financial transactions and assets, reporting to the board, the minister and parliament. The Auditor-General also audits and reports on compliance with the performance standards prescribed for Australia Post under section 28C of the APC Act. Ernst & Young has been retained by the Australian National Audit Office to assist in both of these assignments.

The board has adopted a comprehensive set of audit independence principles in relation to the external auditors. Among other things, these principles exclude the engagement of the external auditors for the provision of certain non-statutory audit-related services such as internal auditing, taxation planning, treasury policy and operations, and business and strategic planning. In addition, the senior audit partner on the corporation’s account is to be rotated at least every five years.

Australia Post maintains an independent internal audit service to assist the corporation in meeting its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, control and governance processes.

Internal audit is empowered by the board to direct a comprehensive program of internal auditing within the corporation, with full and unrestricted access to all functions, property, personnel records, accounts, files and other documentation.

The internal audit work program is subject to annual endorsement by the Audit & Risk Committee, with the results, progress and performance regularly reviewed by both the committee and the external auditors.

The internal auditor also meets privately with the committee before each meeting, without other management present.