CONSTITUTION AND ADMINISTRATION
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The Director of Audit carries out two types of audit: regularity audits and value for money audits. Regularity audits are intended to provide an overall assurance of the general accuracy and propriety of the financial and accounting transactions of the government and other audited bodies. The Audit Ordinance gives the Director statutory authority for conducting regularity audits.
Value for money audits are intended to provide independent information, advice and assurance about the economy, efficiency and effectiveness with which any branch of the Government Secretariat, department, agency, other public body, public office or audited organisation has discharged its functions.
Except for some public organisations where the Director of Audit has obtained statutory authority to conduct value for money audits in the respective ordinances, value for money audits are carried out according to guidelines tabled in the Legislative Council by the chairman of the Public Accounts Committee in 1986.
After the Director of Audit's report has been submitted to the President of the Legislative Council and laid before the Council, it is considered by the Public Accounts Committee. In 1996, the Director submitted three reports. The first report, tabled in April, covered the results of value for money audits completed. The second and third reports, in November, covered the audit certification of the government's accounts for the preceding financial year and the results of completed value for money audits.
The Director of Audit's reports on the accounts of other public bodies are submitted to the relevant authority in accordance with the legislation governing the operation of these bodies.
Foreign Relations
The Role of the British Government
Because of Hong Kong's status as a dependent territory, the Secretary of State for Foreign and Commonwealth Affairs is constitutionally responsible to the British Parliament for the actions of the Hong Kong Government and he has authority to give directions to the Governor of Hong Kong. However, such formal directions have not been issued in living memory, and Hong Kong conducts its affairs with a high degree of autonomy in all domestic matters.
The relationship between London and Hong Kong is essentially one of co- operation. One important task regularly undertaken by the Foreign and Commonwealth Office is to ensure that Hong Kong's interests and views (which are not always identical to those of the United Kingdom) are properly considered within the British Government machinery, particularly when new policies are being formulated by other Whitehall departments.
Hong Kong's foreign relations are constitutionally the direct responsibility of the British Government. The British Government is internationally responsible for ensuring that the Hong Kong Government fulfils its obligations under the many international conventions and agreements which extend to Hong Kong, as well as to the United Kingdom. But in the day-to-day conduct of external affairs, Hong Kong in practice enjoys a considerable degree of autonomy, and full autonomy regarding international economic and trade matters.