Junior Finance Minister Patrick O'Donovan has said he wants to see city and county councils’ spending looked at by the Public Accounts Committee.
While there is a local government audit service, councils are exempt from any scrutiny by the Comptroller and Auditor General.
The Government is in the process of reviewing the spending of city and county council finances.
Minister O’Donovan said: “I’m not hung up about how (scrutiny of spending) is done; whether it’s by the Comptroller Auditor General or by way of the local government audit service.
“What I do think is absolutely necessary at the moment is that, based on all of what has happened in the last number of years, I think we are in need of a greater level of oversight.”