Government Departments: Audit

(asked on 29th June 2022) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what (a) criteria and (b) processes determine whether a matter is internally audited by Government or independently scrutinised by an independent body in relation to appraising the functions of Government.


Answered by
Simon Clarke Portrait
Simon Clarke
This question was answered on 4th July 2022

The remit of and approach to internal audit in central government is set by the Public Sector Internal Audit Standards (PSIAS) which are mandated by HM Treasury. The PSIAS (which are themselves based on the International Professional Practices Framework for internal auditors in the profession more broadly) set the remit of internal audit essentially as covering the adequacy and effectiveness risk management, control and governance matters. The precise areas covered in the internal audit programme at each government entity is a matter for agreement with the relevant accounting officer and typically focus on key risk areas and major management processes. The role of internal audit in government is underpinned by the Corporate Governance Code of Good Practice and Managing Public Money.

The basis for determining matters to be independently scrutinised varies from case to case. Probably most notably the role of the National Audit Office focuses largely on financial reporting and value for money. The planning, conduct and reporting of that work is independent of government and underpinned by separate legislation and professional standards. Numerous other independent bodies focus on specific sectors or functions and have different remits accordingly.

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