The Committee on the Auditor-General (Committee) is established by section 10(3) of the Public Audit Act 25 of 2004 (PAA) which stipulates that the National Assembly (NA) must provide for a mechanism to maintain oversight over the Auditor-General (AG) in terms of section 55(2)(b)(ii) of the Constitution. Section 2(c)(i)(ii) of the PAA provide that the Committee must assist the AG in order to ensure the independence, impartiality, dignity and effectiveness of the AG; and to advise the NA. Therefore, the Committee assists the AG to improve the effectiveness of the public audit service. However, if the systems of financial management, governance, supply chain management, and human resource capacity are inadequately implemented it may impact negatively on the effectiveness of public audit service. The general issues raised on the consolidated audit outcomes of the municipalities and the municipal entities relate to the following systems: