The Office of the Auditor General says the Department of Corrections will have to be closely monitored, to ensure recommendations to improve the management of prisoners on parole are put in place.
Officials appeared before the Law and Order Select Committee at Parliament on Wednesday morning.
A recent Auditor General report found widespread problems with the department's handling of offenders on parole, including those considered high risk.
Andrew McConnell from the Office of the Auditor General said both resourcing and a failure to properly ensure policies were being followed, were the two main reasons for current problems at the department.
He told MPs the Office intends to carry out a follow-up audit in a few years.
