Code of audit practice

Auditor General

Description

Code ofaudit practicePrepared for the Auditor General and the Accounts CommissionMarch 2007Audit Scotland is a statutory body set up in April 2000 under the Public Finance and Accountability (Scotland) Act 2000. It provides services to the Auditor General for Scotland and the Accounts Commission. Together they ensure that the Scottish Executive and public sector bodies in Scotland are held to account for the proper, efficient and effective use of public funds.1ContentsForewordPage 2Part 1. IntroductionPage 4Part 2. Framework for public sector audit in ScotlandPage 7Part 3. Financial statements andcorporate governance Page 11Part 4. Performance management and auditPage 16Part 5. Reporting the auditPage 19Part 6. Other mattersPage 23Appendix 1. Auditors’ statutory duties for bodies falling within the Auditor General’s remitPage 25Appendix 2. Auditors’ statutory duties for local government bodiesPage 26Appendix 3. Public rights of inspection and objection under the Local Government (Scotland) Act 1973Page 27Appendix 4. Statutory reports under Section 102 of the Local Government (Scotland) Act 1973Page 28Appendix 5. Glossary of termsPage 292ForewordThis revised Code has been prepared by Audit Scotland and approved by the Auditor General and the Accounts Commission to apply to the audits of all bodies within their respective remits. The Code applies to audits for financial years commencing on or after 1 April 2006 ...

Informations

• Publié par: Urne
• Nombre de lectures: 48
• Langue: English

Extrait

Code of audit practice

Prepared for the Auditor General and the Accounts Commission March 2007

Audit Scotland is a statutory body set up in April 2000 under the Public Finance and Accountability (Scotland) Act 2000. It provides services to the Auditor General for Scotland and the Accounts Commission. Together they ensure that the Scottish Executive and public sector bodies in Scotland are held to account for the proper, efficient and effective use of public funds.

Contents

Foreword Page
2

Part
1.
Introduction Page
4

Part
2.
Framework
for
public
sector
audit
in
Scotland Page
7

Part
3.
Financial
statements
and corporate
governance
Page
11

Part
4.
Performance
management
and
audit Page
16

Part
5.
Reporting
the
audit Page
19

Part
6.
Other
matters Page
23

Appendix
1.
Auditors’
statutory
duties
for
bodies
falling
within
the
Auditor
General’s
remit Page
25

Appendix
2.
Auditors’
statutory
duties
for
local
government
bodies Page
26

Appendix
3.
Public
rights
of
inspection
and
objection
under
the
Local
Government
(Scotland)
Act
1973 Page
27

Appendix
4.
Statutory
reports
under
Section
102
of
the
Local
Government
(Scotland)
Act
1973 Page
28

Appendix
5.
Glossary
of
terms Page
29

1

2

Foreword

This
revised
Code
has
been
prepared
by
Audit
Scotland
and
approved
by
the
Auditor
General
and
the
Accounts
Commission
to
apply
to
the
audits
of
all
bodies
within
their
respective
remits.
The
Code
applies
to
audits
for
financial
years
commencing
on
or
after
1
April
2006.

The
first
Code
of
Audit
Practice
(the
Code)
prepared
by
Audit
Scotland
was
issued
in
July
2001.
Since
then
there
have
been
developments
in
legislation,
auditing
standards
and
auditing
approaches
which
make
it
appropriate
to
revise
and
refresh the
Code. This
revised
Code
has
been
prepared
byAudit
Scotland
and
approved
by
neral
and
the
ht
euAidot
reG Accounts
Commission
to
apply
to
the
audits
of
all
bodies
within
our
respective
remits. The
revised
Code
retains
the
emphasis
on
the
common
features
of
public
audit
across
Scotland,
while
recognising
that
there
are
still
differences
in
the
underlying
statutory
frameworks. The
Code
contains
a
new
section
setting
out
the
basic
principles
that
govern
all
audit
work
and
stresses
theneed
for
all
auditors
to
recognise
thelinks
between
different
parts
of
theaudit.
The
Code
also
emphasises
the

dofneeno

worrsk

itditor
au partnership
with
each
other
and
with
Audit
Scotland
to
deliver
an
integrated
audit
which
provides
added
value
to
audited
bodies.
Over
the
five
years
that
the
previous
Code
was
in
effect
Audit
Scotland
and
the
appointed
auditors
have
benefited
from
working
more
closely
together.
We
expect
to
see
further
benefits
in
the
future
from
greater
sharing
of
information
and
discussion
of
risks
and
issues
common
to
the
whole,
or
a
part,
of
the
public
sector. Other
changes
to
the
Code
include
reflecting
the
Local
Government
in
Scotland
Act
2003,
which
introduced
the
statutory
duty
of
Best
Value
for
local
government,
and
the
introduction
of
International
Standards
on
Auditing
(UK
and
Ireland)
to
replace
Statements
of
Auditing
Standards.

In
approving
the
revised
Code,
we
believe
that
audits
carried
out
in
accordance
with
the
stated
basic
principles
will
help
us
to
meet
our
joint
objectives
of
ensuring
a
high
standard
of
stewardship
of
public
funds
and
promoting
Best
Value
in
the
use
of
resources.

Robert
W
Black Auditor
General
for
Scotland

Alastair
MacNish Chairman, Accounts
Commission
for
Scotland

March
2007

Foreword

3

4 Part
1.
Introduction

Public
bodies 1.
icblpur
foe
blisnopser
esohT
business
and
handling
public
money
must
be
held
accountable,
in
accordance
with
the
law
and
proper
standards,
to
those
who
use
and
pay
for
the
services
provided.
Public
resources
should
be
safeguarded,
properly
accounted
for
and
used
economically,
efficiently
and
effectively.
Public
bodies,
including
Audit
Scotland,
are
increasingly
expected
to
operate
within
the
principles
of
Best
Value,
which
means
the
achievement
of
continuous
improvement
in
the
delivery
of
their
functions.
This
includes,
among
other
things,
having
regard
to
the
concepts
of
economy,
efficiency
and
effectiveness
and
the
need
to
meet
equal
opportunity
requirements,
and
contributing
to
the
achievement
of
sustainable
development. 2.ies,
bodblic
Pudutig
nA
ulidi
cn Scotland,
also
have
statutory
duties
to
promote
equal
opportunities
and
diversity
in
the
course
of
their
work.

3.I

ndaidog
,noittnemnrevy
icol
p expects
the
delivery
of
more
responsive
and
higher
quality
public
services
that
are
integrated,
user-orientated
and
focused
on
outcomes.
This
requires
a
‘whole
systems’
approach
to
performance
management
and
may
involve
partnerships
with
other
organisations
in
the
public
and
private
sectors.
These
arrangements,
which
typically
involve
new
ways
of
working,
have
implications
for
the
safeguarding
and
stewardship
of
public
resources. 4.lecesr
,et
dshtiotScteisin
m
ehT
members,
governing
bodies,
boards,
accountable
officers,
managers
and
officials
have
primary
responsibility
for
ensuring
that
public
business
is
conducted
in
accordance
with
the
law
and
proper
standards,
and
that
public
money
is
handled
with
integrity
and
spent
appropriately.
Public
bodies
and
those
responsible
for
conducting
their
affairs
must
discharge
this
accountability
by
establishing
and
maintaining
proper
governance
arrangements
and
effective
stewardship
of
the
resources
at
their
disposal.

Public
sector
auditors 5.
taht
seitilbitauncoacl
iaec
The
sp attach
to
the
conduct
of
public
business,
and
the
use
of
public
money,
mean
that
public
sector
audits
must
be
planned
and
undertaken
from
a
wider
perspective
than
in
the
private
sector.
This
means
providing
assurance,
not
only
on
the
financial
statements
(and
statements
of
corporate
governance,
internal
control
or
internal
financial
control)
but
providing
a
view
also
on
matters
such
as
regularity
(or
legality),
propriety,
performance
and
the
use
of
resources
in
accordance
with
the
principles
of
Best
Value
and
‘value for
money’.
6.A
ccroidgnyl
ce
ilwh,
sibae
th principles
for
auditing
financial
statements
are
common
to
the
public
and
private
sectors,
external
auditors
in
the
public
sector
also
review
and
report
on
aspects
of
arrangements
made
by
bodies
to
ensure
the
proper
conduct
of
their
affairs
and
to
manage
performance
and
use
of
resources.