A Few Good Men: Public Sector Audit in the Swan River Colony, 1828 – 1835 M. Bunn D. J. Gilchrist1 Curtin University Curtin University Abstract The appointment of the Auditor General to undertake public sector audit is the primary instrument used to safeguard public finances in most contemporary Westminster-based democracies. It is axiomatic that the independence of the Auditor General from executive government is a critical element in ensuring the effectiveness of the role, yet this separation is a relatively recent phenomenon. Those responsible for nineteenth century public sector audit in the Australian colonies operated in what would today be considered an unacceptable environment, with little, if any, independence from the executive arm of government. Yet, while several other Australian colonies suffered from the mismanagement of government finances, there is nothing to show that the Swan River Colony experienced much more than clerical errors and minor administrative oversights. In this paper, we explore the extent to which satisfactory public financial management in the Swan River Colony occurred as a result of both good financial management systems (in the context of the era) and the appointment of competent and ethical administrators – a few good men. Key Words: Accounting History, Auditing History, Swan River Colony, Public Sector Accounting 1 Correspondence to D. J. Gilchrist, Curtin University
[email protected] Introduction In 2007 the International Organisation of Supreme Audit Institutions (INTOSAI) proclaimed that ‘...the orderly and efficient use of public funds and resources constitutes one of the essential prerequisites for the proper handling of public finances and the effectiveness of the decisions of the responsible authorities’.1 In most democracies, the Auditor General’s role in the auditing of public sector financial reports is one of the principal elements used by Parliaments in safeguarding public finances and for assisting in providing an assurance of executive accountability and transparency.