The State Audit Office is an independent audit institution headed by the auditor-general, who is appointed and released from office by the Riigikogu on a proposal of the president. The term of office of the auditor-general is five years. The auditor-general may participate in government meetings, with the right to speak on issues related to his duties. The law provides for the organisation, specific duties and rights of the State Audit Office. Currently, the State Audit Office consists of three departments and has about 100 staff members.
Local governments are accountable externally in three ways.
First, county governors may exercise supervision over the legality of the activities of local governments and also over the legality and purposefulness of the use of state assets. Secondly, the State Audit Office audits the use and disposal of state assets that have been transferred to the control of local governments. Thirdly, the legal chancellor reviews the conformity of local government legislation with the constitution and the law. In addition, the Local Government Act also requires local representative councils to set up an audit committee to audit the administration. Currently there is no external body which audits both the annual financial statements and the activities of local governments as a whole.