The audit process: assuring the integrity of public spending

David WatkinsChair, Accounting and Auditing Standards Panel

ICPS Public Accounts Committees International Symposium 2013

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Agenda

Who is responsible for the integrity of public spending?

The role of the auditor Standards used in the UK Best practice

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Who is responsible?

Individuals Managers Leadership

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The internal auditor

Reports to leadership Professional qualification Professional standards, internationally based Provides opinion on governance processes and

procedures Value for money

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The external auditor

Reports to external stakeholders and to leadership Independently appointed Professional qualification Professional standards, internationally based Provides an opinion on the financial statements – the

figures and regularity Exception reporting on governance processes and

procedures Value for money

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Standards used in the UK

Public Sector Internal Audit Standards International Federation of Accountants

Code of Ethics for Professional Accountants International Standards on Auditing, Review, Other

Assurance, and Related Services Financial Reporting Council

Practice Note 10 Audit Commission

Code of Audit Practice – local government Code of Audit Practice - health

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Best practice

Risk based Internal control Governance arrangements Public financial management Financial management maturity