The Auditor-General was established under the Constitution of the Republic of the Marshall Islands. The Office of the Auditor-General was established as an independent agency to conduct audits of all the Republic of the Marshall Island agencies and activities. Section 15 of Article VIII of the Constitution states “The Auditor-General shall audit the public funds and accounts of the Republic of the Marshall Islands including those of all Department or offices of the legislative, executive and judicial branches of government and of any other public corporation or other statutory authority constituted under the laws of the Republic unless, in relation to any such public corporation or other statutory authority, provision is made by Act for audit by any other person”
In addition, the following legislations impose other functions and responsibilities upon the office of the Auditor-General:
- Public Law 1986-25 (The Auditor-General’s Act of 1986), defines the powers, functions, obligations, and responsibilities of the Auditor-General. This legislation imposes a responsibility upon the Auditor-General to specially act to “prevent and detect fraud, abuse, and waste in the collection and expenditure of all public funds”.
- Public Law 1981-2 (Local Governments Act of 1980), designates the Auditor-General as cognizant auditor for the local government (municipalities).
- Public Law 1993-63 (Ethics in Government Acts of 1993). The Auditor-General is a member of the Government Ethics Board pursuant to provisions of this Act and, therefore, the Auditor-General has responsibility to detect and prevent breaches of established code of ethical conduct by government officials and employees.
The Office of the Auditor-General is headed by the Auditor-General who is nominated by the Speaker, with the approval of the Nitijela, signified by resolution, and is appointed by the President.