The Comptroller and Auditor General is Parliament's independent auditor who examines and certifies the accounts of government departments, executive agencies, and other organisations. This report summarises the results of financial audit work undertaken by the National Audit Office from February 2002 to January 2003 and considers regarding: financial management and reporting; resource accounting and resource-based Parliamentary Supply; corporate governance; audits of revenue receipts and public debt and reserves.

The Comptroller and Auditor General is Parliament's independent auditor who examines and certifies the accounts of government departments, executive agencies, and other organisations. This report summarises the results of financial audit work undertaken by the National Audit Office from February 2003 to January 2004 and highlights key financial audit and accounting issues in the central government sector. Findings include that during 2002-03, continued progress was made towards improving financial management, particularly by the strengthening of corporate governance arrangements. The number of departmental resource accounts qualified in respect of truth and fairness halved in number compared to the previous year, and the nature of the qualifications was less severe. However, more can be done by departments to avoid spending more resources than permitted by Parliament and to ensure that they submit accounts for audit in a more timely manner. The report welcomes the orders made by the Treasury extending statutory rights of access to those private sector bodies in receipt of public funds, and transferring the audits of a number of non-departmental public bodies to the Office of the Comptroller and Auditor General.