The National Audit Office (NAO) is the external auditor of all government departments and a wide range of other public sector bodies. The role of the NAO is to scrutinise public spending on behalf of Parliament. The NAO has statutory authority to report to Parliament on the value for money of government expenditure.
The Public Accounts Committee draws on the NAO's findings to question the government on the implementation of its spending decisions.
Examining the NAO's annual spending proposals
The Budget Responsibility and National Audit Act 2011 requires the Public Accounts Commission (not the Public Accounts Committee) to examine the NAO's annual spending proposals as set out in its Main Supply Estimate and to lay it before the House of Commons. The Act provides that in doing so, the Commission should have regard to advice given by the Public Accounts Committee.
The NAO Estimate will set out a total net resource requirement for the provision of audit and other assurance services.