The Legislative Assembly's Public Accounts Committee's chairwoman, Greens MLA Caroline Le Couteur, said the inquiry would review and report on whether the Auditor-General Act 1996 appropriately safeguarded the independence of the government watchdog.

''Given recent discussion in the community about the important role of the Auditor-General, it seems an appropriate time to review the Act,'' Ms Le Couteur said.

The committee will review the Act after it was proposed the law be changed to allow the Assembly, rather than the Government, to set funding for the ACT Auditor-General.

The committee will examine the proposal and decide if any changes to the Act are needed to strengthen the role of the Auditor-General as an independent officer of the Assembly.

The Auditor-General's role is now held by Tu Pham.

In June, Chief Minister Jon Stanhope flagged a possible audit of and funding cut to the Auditor-General's Office.

For more, pick up a copy of today's Canberra Times