The tenets of local government are based on strong financial probity, adherence to independence principles to avoid conflict of interest and conformance to ethical principles. This thesis addresses the issue of possible corruption and misconduct in local government, with particular reference to the role of the audit committee. The primary research question is: ‘Do audit committees in Victorian local government function effectively?’ The secondary research question is: ‘Do the investigations into local government maladministration and malfeasance enhance governance and the audit committee’s effectiveness?’ Qualitative and quantitative data were collected to develop a model of audit committee effectiveness through a pilot survey, research questionnaire and interviews.