The office is established to examine accounts under section 123 (3) of the Constitution of the F R of Nig (Promulgation) decree No 12 of 1989 which states as follows;

I. There shall be an Auditor-General for the Local Government who shall be appointed by the Governor on the recommendation of the State Civil Service Commission subject to the ratification of the House of Assembly.

I. The public account of a Local Government and of all offices of the Local Government and all offices of the Local Government including Local Government Education Authorities, Local Government Staff Pension Board and Local Government jointly owned Parastatals such as Ibadan Local Government Properties shall be audited by the Auditor-General for Local Government who shall submit his report to the House of Assembly

II. For the purpose of subsection (2) of the Section, the Auditor-General or any person authorized by him in that behalf shall have access to all books, records, returns and other documents relating to those accounts

V. The chairman of the Local Government shall render annual financial statements to the office of the Auditor-General in respect of the previous year, latest six months after completion of the year.

. The Auditor-General for Local Governments shall submit his report to the House of Assembly of the State which shall cause the reports to be considered by the Public Accounts Committee of the House

I. The Auditor-General for Local Governments shall exercise such powers as may be conferred on him by the Executive and the Legislative Arms of the Government of the State

II. In the exercise of his functions under this law, the Auditor-General shall not be subject to the direction or control of any other authority or person.