Local Government Councils are reliant on a number of funding sources including State and Federal governments as well as their community constituents to enable them to provide a range of public services. Given these funding sources councils need to have in place a range of strategies and policies capable of providing good governance and appropriately discharge their financial accountabilities. To assist Local Government Councils with meeting their governance and accountability obligations they often rely on guidance from their key stake­holders. For example in the Australian State of NSW, the Office of Local Government has developed a set of guidelines, the Internal Audit Guidelines. In 2010 the NSW Office of Local Government issued revised guidelines outlining that an internal audit committee is an essential component of good governance. In addition, the guidelines explained that to improve the governance and accountability of the councils, these committees should be composed of a majority of independent members and to maintain committee independence the Mayor should not be a member of the committee. However these are only guidelines, not legislated requirements and as such compliance with the guidelines, before they were revised, has been demonstrated to be quite low (Jones and Bowrey, 2013). This study, based on a review of NSW Local Government Councils’ 2012/2013 reports, including Annual Reports and associated disclosures, assesses the level of compliance with the 2010 revised guidelines, specifically in relation to internal audit committees, to determine if the guidelines are sufficient to improve Local Government Council governance.