Introduction to statement
1. This statement serves as the formal terms of engagement between appointed auditors and audited bodies. It summarises where the different responsibilities of auditors and of the audited body begin and end, and what is to be expected of the audited body in certain areas.
2. The responsibilities of auditors are derived from statute, principally the Local Audit and Accountability Act 2014 (the Act) and from the Code of Audit Practice (the Code) issued by the NAO on behalf of the Comptroller and Auditor General.
3. The NAO has the power to issue guidance to auditors under Schedule 6 paragraph 9 of the Act. Auditor Guidance Notes (AGNs) set out guidance to which local auditors must have regard under Section 20(6) of the Act.
4. Nothing in this statement is intended to limit or extend those responsibilities. In particular, audited bodies should note that, because auditors must not prejudice their independence, the role of the appointed auditor does not include providing financial or legal advice or consultancy services to the audited body.
5. Auditors may wish to refer to this statement in audit planning documents, annual audit letters, reports and other audit outputs.Back to top