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Internal Audit v External Audit

What's The Difference?

External Audit

All Councils are subject to ongoing External Audit scrutiny, in a similar way that companies are. External Auditors are independent from the management of the Council and are appointed by the Audit Commission.

 

District Audit is the appointed External Auditor for many Local Authorities. However, this responsibility has been taken over by Mazars, Neville, Russell (a firm based in Southampton). External audits are carried out in line with the Audit Commission's Code of Audit Practice and work to an annual plan agreed in advance by the Chief Executive Officer and the Director Of Finance and Resources.

 

District Audit's work includes:

  • Reviewing the accuracy of the Council's Financial Accounts and Statements, including grant claims and Performance Indicators
  • Assessing the financial standing of the Authority
  • Reviewing financial aspects of Corporate Governance such as prevention of fraud and corruption, standards of financial conduct, and the legality of financial transactions
  • Reviewing the adequacy of performance management arrangements, including the production of the Best Value Performance Plan
  • Carrying out national value for money studies

At the year end District Audit produce a management letter summary of their work and conclusions which is circulated to all Councillors and the Council's Chief Executive Officer and the Director Of Finance and Resources.

Internal Audit

Internal Audit is established by the Council's management as part of the internal control framework of the Council and its purpose is to help the organisation achieve its objectives. Further information on the role of Internal Audit can be found on our Internal Audit - What Is It? page.

 

Back to Internal Audit Home Page