The audit found the Education Directorate did not have an informed understanding of the number of underperforming teachers and the performance management process was not well-implemented.
It also found the majority of teachers who resigned between 2014 and 2020 left in the first seven years of service and the directorate did not monitor reasons for leaving the profession through exit surveys.
The report made 14 recommendations, including a redesign of the support program for new educators and centrally managing the distribution of the most experienced teachers throughout ACT schools.
Mr Hanson said the report highlighted a lack of consistency between public schools.
"This is yet another damning report into the ACT government school system, including findings from the Auditor-General that, 'The teacher performance development process is not effective in supporting teaching quality'," Mr Hanson said.
"Given the Auditor-General has recommended five reviews now occur into aspects of teacher quality programs that are failing or need rectifying, this report validates the Canberra Liberals' calls for a comprehensive review of our school system.
"The report also confirms the concerns we have raised about school autonomy and inconsistency across schools as well as a failure to properly evaluate and review programs that have been implemented."
ACT Education Minister Yvette Berry said the government would respond to the report once it had a chance to work through the recommendations.
"We're always, always up for improvement," Ms Berry said.
"There's no government that should be saying you can't improve anywhere and we'll take very careful consideration on the Auditor-General's recommendations and if there's more improvements that need to be made, then we can consider those. But we'll respond fully to the report in the time frame that we're required to."
Ms Berry said the ACT had a good teacher registration system in place and that teachers in the territory had the best industrial arrangements and pay rates in the country.
"We know that absolutely teacher quality is the most important thing in a child's education and we'll continue to work with our teaching profession as well as their union to make sure they're being supported appropriately," she said.
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