This guidance from CIPFA encourages local authorities to put in place an
audit committee where they do not have one, and helps those with established
committees to make them more effective.
Audit committees have been required in many organisations in both the private
and public sectors for some time now, but local government has some ground to
make up. Fewer then half the local authorities in England and Wales have an
audit committee. Yet audit committees are a key aspect of good corporate governance;
they help raise the profile of internal control, risk management and financial
reporting issues within an organisation, as well as providing a forum for the
discussion of issues raised by internal and external auditors. And they enhance
public trust and confidence in the financial governance of an organisation.
Ideally, audit committees should be separate from executive and scrutiny arrangements,
and chaired independently from both these functions. Local authorities may organise
their committee functions differently, but what is important is that the functions
of an audit committee are delivered efficiently and effectively.
Status and independence are important, but being effective also means having
well informed people able to confirm to the council that the right processes
are in place to give confidence that the local authority’s financial stewardship
and overall governance arrangements can be relied upon. CIPFA’s guidance,
therefore, provides valuable advice on the skills required by members, their
selection and training, and how committees should be supported.
Audit committees are not just the concern of auditors; they are about the governance,
financial reporting and performance of the whole organisation. Everyone charged
with the responsibility for governance in their local authority will want to
familiarise themselves with the issues covered by this new practical guide,
and will doubtless wish to share it widely as a driver to enable their audit
committee to work effectively.
View the Briefing Note for Users of the Guide: PDF (489kb)
£75.00 for the first copy and just £20.00 each for the second and subsequent copies
View the contents: Word
(9kb) | PDF
(45kb)
View the preface: Word
(21kb) | PDF
(44kb)
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