What Public Bodies Can Expect From Their Auditors
A Consultation Paper by the Public Audit Forum

Audit in the public sector can be a positive experience for everyone if there is a real commitment to transparency by all parties. This means auditors working openly and considerately, with regard to efficiency and value for the bodies they audit. And it means management complying fully with accountability requirements and themselves being open in their dealings with auditors.

The Public Audit Forum has today launched a major consultation exercise aimed at clarifying the relationship between public sector auditors and their audited bodies. The Forum's paper sets out its thoughts on how the relationship should be defined, as a basis for seeking the views of all those with an interest in public sector audit.

The Forum urges public sector auditors to ensure they have a comprehensive and informed understanding of the body's business. They must also consider carefully the body's needs in respect of the timing of the audit. At the same time, it is the responsibility of public sector bodies to maintain proper accounting records, submit good quality accounts to the timetable agreed and facilitate the collection of evidence by auditors.

Openness and transparency are key to an effective relationship between auditor and audited body. The Forum sets out how it would expect auditors to be fully candid about the approach they are adopting and to be accessible to the bodies they audit throughout the year. They should also seek to minimise changes in key audit personnel which is always likely to be disruptive to audited bodies.

Public sector auditors must always be conscious of the kind of burdens they are imposing and should always seek to ensure their work is cost-effective. Wherever possible, bodies should not be subjected to several layers of audit. This means auditors must do all they can, consistent with their professional responsibilities, to draw on the work of internal auditors, other external auditors, regulators and inspectors.

The reports of public sector auditors must always be objective, balanced, reliable, clear, persuasive and timely. The Forum sets out how auditors should give bodies the opportunity to agree the facts set out and comment on the opinions reached.

The Forum believes it is unreasonable for public sector bodies to expect auditors to fulfil the role of management consultants. However, while carrying out their work, auditors should look for opportunities to recommend cost-effective improvements and to highlight and disseminate good practice.

Sir John Bourn, chairman of the Public Audit Forum said "This paper represents an important step forward in the relationship between public sector bodies and their auditors. We look forward to getting everyone's views on it. There is a opportunity here to clarify expectations and achieve real benefits for all parties."

The chairman of the working group that prepared this paper, John Dowdall, said "We believe that mutual openness is the key to top quality public sector audit. We hope that all public auditors and audited bodies will make a clear commitment to it."

NOTES TO EDITORS:

Comments on the consultation paper should be sent to the heads of the four national audit agencies and should be received by 30 September 1999.

Public sector audit has a key part to play in safeguarding public money, ensuring proper accountability, upholding proper standards of conduct in public services and helping public services achieve value for money.

The Public Audit Forum was established in 1998 by the heads of the four national audit agencies. The heads of agency are: Sir John Bourn, National Audit Office; Andrew Foster, Audit Commission; Bob Black, Accounts Commission for Scotland; and, John Dowdall, Northern Ireland Audit Office. The Forum's overall aim is to provide a focus for developmental thinking about public audit.

The Public Audit Forum has a specific remit to build on the existing co-operation between the national audit agencies to enhance the efficiency and effectiveness of public audit, to provide a strategic focus on issues cutting across their work and to develop common standards for public audit. This paper was prepared by a consultative forum which draws on the experience and expertise of public auditors, the bodies they audit, the auditing profession and the wider community.

An Adobe Acrobat PDF version of this report is available in the publications section of this website.

for further information please contact:
Keith Davis
on 0171 798 7284