AGO has a Quality Assurance Framework (QAF). This AGO QAF comprises systems, structures, policies and procedures that are designed to provide reasonable assurance that the audits done by AGO meet recognised professional standards.

The AGO QAF comprises the following elements:

Leadership which sets out AGO's vision and mission, enabling legislation, core values, organisation structure and decision-making bodies, and professional standards adopted. It also lays down the AGO Pledge and AGO Code of Conduct and Ethics which AGO auditors must abide by.

Human Capital which sets out the management policies and procedures to attract, retain, motivate and develop a high calibre workforce in order that AGO has staff with the professional qualification, technical competence and capabilities to carry out their work well.

Managing Audits which deals with the application of auditing standards in AGO audits from start to finish, including communicating the results of audit in management letters and reporting summaries of selected audit findings in the annual Report of the Auditor-General to the President and Parliament.

Monitoring and Policy Reviews which are to provide reasonable assurance that AGO is complying with professional standards and its core values. It covers mechanisms such as internal reviews of audits conducted and benchmarking to help ensure quality and continuous improvement throughout the whole organisation.

The Auditor-General is empowered to audit the accounts of the Government and public authorities and bodies administering public funds as prescribed under the law. Where it is not provided for under any written law, the Auditor-General may audit the accounts of the public authority or body with Minister’s consent.

In addition, the Auditor-General may conduct "follow-the-dollar" audits on non-Government entities under the Minister's direction.

The Auditor-General may conduct a “follow-the-dollar audit” if the Minister is satisfied that it is in public interest to do so. Upon the Minister’s direction, the Auditor-General may audit whether non-Government entities have complied with the terms and conditions set for the use of public funds.

For example, if a Voluntary Welfare Organisation (VWO) has been appointed by the Government to disburse public funds to the needy and there are reasons to suspect that the VWO has used the funds for unauthorised purposes, the Minister can direct that a "follow-the-dollar" audit be conducted on the VWO to ascertain whether the public funds given to the VWO have been used according to the terms and conditions set out by the Government.

AGO carries out financial regularity audits and selective audits as depicted in the Venn diagram below.

A financial regularity audit of an entity involves the following:

1. an examination of accounts for the purpose of rendering an opinion on financial statements [Financial Statements audit];

2. a check for compliance with laws, policies, contracts and agreements, and administrative rules or instructions, involving, or as may affect the revenue, expenditure, assets and liabilities [Compliance audit]; and

3. a check on the adequacy of internal control systems (e.g. IT controls, approving authorities) that Management has put in place to safeguard its resources against waste, loss and misuse [Internal Controls audit].

A selective audit is an examination of selected activities and operations, carried out in relation to the accounts,

1. to check for financial irregularities (apart from rendering an opinion on the financial statements); and

2. to ascertain whether there has been excess, extravagance, or gross inefficiency leading to waste, and whether measures to prevent them are in place.