Introduction to responsibilities
10. Those responsible for the conduct of public business and for spending public money are required to ensure that public business is conducted in accordance with the law and proper standards, and that public money is safeguarded and properly accounted for, and used economically, efficiently and effectively. The publication of the financial statements is an essential means by which the audited body accounts for its stewardship and use of the public money at its disposal.
11. In discharging these responsibilities, public bodies must put in place proper arrangements for the governance of their affairs and the stewardship of the resources at their disposal. They are also required to report on their arrangements in their published annual governance statement.
12. Audited bodies must ensure that they have a sound system of internal control which:
- facilitates the effective exercise of its functions and the achievement of its aims and objectives;
- ensures that the financial and operational management of the authority is effective; and
- includes effective arrangements for the management of risk.
13. In carrying out their work auditors will:
- comply with professional standards;
- plan and manage the audits in a timely, professional and efficient manner;
- plan to complete work within agreed deadlines;
- maintain close liaison with the audited body; and
- provide appropriate and adequate resources and assign responsibilities to staff with the relevant expertise and experience.
14. In planning their work auditors should consider how best to obtain assurance where audited bodies are operating, commissioning and delivering services in partnerships or other forms of joint working or contracts with other public, private or third-sector bodies. Auditors should plan to work effectively with other auditors where appropriate.
15. The auditor should report using their professional judgement and reflecting the wider scope of public audit. The auditor should report on a timely basis, clearly, concisely and objectively without fear or favour. Timely reporting includes producing audit reports in time, insofar as the auditor can do so under auditing standards, to allow local bodies to comply with the requirements placed on them to publish their audited financial statements. It also means ensuring that when matters of concern arise during the course of the audit, the auditor raises them promptly with the audited body and considers whether the matter needs to be brought to public attention at the appropriate time.
16. Auditors and audited bodies will foster a culture and working environment where everybody is treated with respect, courtesy and fairness reflecting their Equality, Diversity and Inclusion policies. Both are committed to encouraging and enabling conversations to address any behaviours that are not aligned with these policies and dealing with any matters raised in accordance with those policies.