Financial statement audits check whether financial reports are accurate and whether they comply with international accounting and reporting standards. In other words, they check whether amounts collected or spent are properly described and supported by evidence as required by international reporting standards and governing financial laws and procedures such as the [Public Finance and Audit Act (Cap 120)] and its amendments.

In Solomon Islands, the Auditor General is mandated by the [SI Constitution 1978] to carry out financial statement audits on all levels of government and report his findings to Parliament on whether the government has properly collected and spent the people’s money.

These audits include those on the financial operations of Government Ministries, Provincial Governments and Government Agencies such as State Owned Enterprises and Statutory Authorities.