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Main role

  • The National Audit Office is the auditor of the state that verifies whether public funds have been used successfully – economically, efficiently and effectively – and lawfully.
  • The National Audit Office is not interested merely in the formal compliance of the activities with laws, but just as much in the fact whether the laws and the government’s actions are sufficient to ensure purposeful and advisable use of funds and whether the reports give an adequate picture of the spending and its outcomes.
  • The National Audit Office is an independent institution and decides on its own what, when and how to audit. The independence of the National Audit Office is secured by the Constitution and the National Audit Office Act.

Audit areas

We audit all public sector entities and their activities, with particular emphasis currently placed on the following areas:

  • Education, work, social protection and health
  • Sustainable development, infrastructure, energy and environment
  • Internal security and defence
  • Information technology
  • Local governments
  • Accounting and regularity of transactions management

We also monitor and analyse the public finances and public administration as well as other issues of significant economic impact.

Who we audit?

The National Audit Office has the right to cover the entire public sector in Estonia with its audits, including state authorities, legal persons in public law and local authorities.

  • In the case of local authorities, the scope of auditing is limited. The National Audit Office can examine whether the accounting of local authorities is in order, the internal control systems are functioning, the activities are legitimate, and the computer systems are reliable. The restriction is not applicable in areas that are target-financed by the state or if the state has granted a local authority use of its assets.  The National Audit Office may audit the purposefulness, economy, efficiency and effectiveness of use of state assistance and money allocated for a specific purpose.
  • The National Audit Office has the right to audit commercial and non-profit associations and institutions, including subsidiaries of companies founded by the public sector. If a city or a rural municipality has founded an association or institution or participates in it, the restrictions applicable to the National Audit Office in auditing local authorities also apply with regard to auditing these.
  • The National Audit Office can also audit the companies where the state has a majority shareholding or that have received loans from the state or whose loans or contractual obligations are secured by the state, as well as the use and preservation of state assets by persons who have been granted possession of the state assets.
  • The National Audit Office has the right to check the purposefulness of the use of European Union funds and performance of the obligations assumed before the Union in connection therewith.

Types of audits 

We provide assessments on the use of public-sector funds mainly through various types of audits.

Financial audits 

In the course of a financial audit it is assessed whether the financial statements of institutions correctly and reliably reflect their financial condition.

To put it simply, we examine whether the accounts are correct and possibilities of misuse of funds have been eliminated. Financial audits also assess the legality of transactions.

Performance audits 

In the case of a performance audit, it is examined whether the use of funds by the public sector is economic, efficient and effective. A performance audit can also be defined as a process in the course of which it is investigated whether the audited institutions attend to the right thing and whether they do it properly and with the smallest costs.

A performance audit evaluates the activities of the public sector in resolving problems of the strategic level, analyses in-depth the reasons for problems and suggests ideas for overcoming them. Performance audits also aim to identify the best administrative practice and contribute to spreading it.

Compliance audits 

A compliance audit assesses whether legal requirements have been met.

This is typically used in auditing local governments where the National Audit Office is not authorised to carry out performance audits.

Publication of audit results

Audit results are primarily published as audit reports. In addition to audit reports we also use other methods, mainly the preparation of overviews and memoranda, which are generally narrower in scope and may not include evaluations comparable to conventional audits.

Annual report to Parliament

In addition to its ordinary audit reports, the National Audit office submits an annual report to Parliament. 

  • Annual report provides an overview of the use and preservation of state assets during the previous budgetary year.
  • The report is a constitutional obligation and is prepared mainly based on audits conducted during the given year.  
  • This analytical report is supplemented with a speech which the Auditor General gives every autumn before Parliament, replying also to the questions of Members of Parliament.
Evaluation of the state’s consolidated annual report

Under the State Budget Act, the National Audit Office is required each year to submit to Parliament an evaluation of the consolidated annual report of the state.

  • In this evaluation the National Audit Office states, among other things, whether the state’s annual accounts are correct and whether economic transactions have been lawful.
  • This report sets out whether the Government has given Parliament reliable information about the state's economic situation and the use of the taxpayer’s money.
  • The Government’s report, along with the report of the National Audit Office regarding the accuracy thereof, is approved by Parliament each autumn in respect of the previous budgetary year.

Based on the recommendations of the National Audit Office, the Estonian Parliament (the Riigikogu) and the Government can improve the functioning of the state and use the taxpayer’s money more responsibly. 

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National Audit Office of Estonia

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