When Ian McPhee retires from the public service in March he will be able to look back on more than 40 years serving in the federal bureaucracy.

Much of this time has been spent in the agency responsible for auditing federal departments.

"When there are so many people making a contribution out there this is a very special honour," Mr McPhee, the nation's Auditor-General, said of his Australia Day honour.

The 63-year-old's 10-year non-renewable statutory term as head of the Australian National Audit Office ends in March and he does not plan to take up another public service position.

"I've been a public servant for 44 years and started as a cadet in the Australian Audit Office," he said.

"I started there and I'll finish there.

"In between I worked at the Department of Finance on a couple of occasions and at the Australian Bureau of Statistics."

Mr McPhee became an officer in the general division of the order of Australia for distinguished service to public administration, particularly in the areas of accountability and policy development, to the enhancement of public sector performance and to professional auditing and assurance standards.

He was not negative when asked about changes happening across the public service at the moment such as mass job losses. Instead, he said the bureaucracy had always dealt well with transition.

"In the mid 1980s the office I'm in now had 570 staff and now we have 350 and we're doing more reports and more complex audits of financial statements," Mr McPhee said.

"We have achieved better results through the sound application of risk-based auditing, taking advantage of technology to drive efficiencies and the judicious use of partnering arrangements (with accounting firms).

"I think as the current changes occur, the public service just has to be careful not to lose the capacity to give sound long-term advice, as well as deal with the issues of the day."

The job of auditor-general brings with it a lot of personal responsibility. Reports sent to parliament are signed by Mr McPhee.

Significant reports for Mr McPhee in recent years included those on major Defence acquisitions and grants administration. Another job done by his office, which was generally unheralded but important, was the regular program of financial-statement audits of government agencies.

"I'm also aware of the contribution of the 350 people within my office," he said.

"It's very much a team effort. What I've been pleased with is the level of engagement from agencies. There's no push back. Well-meaning people around a table will work things out."

He has been chair of the OECD Accruals Symposium, a member of the Australian Accounting Standards Board since 2009, a member of the Australian Auditing and Assurance Standards Board and of the International Auditing and Assurance Standards Board.