Comments from ACCA to Wales Audit Office
February 2014
1. Do you agree with the five principles which we propose should underpin our audit work?
Yes. We agree with the five principles outlined in the draft Code of Audit Practice and welcome that 'sustainability' is included as one of the key five principles underpinning the audit work of the Auditor General. In our view the integration of 'sustainability' will help auditors to remain alert to social justice, equality and environmental issues during the course of their audits.
2. Do you agree with the content of the proposed General Code which prescribes the way auditors must plan, carry out, report and follow up on their work?
Yes. The General Code of audit appears comprehensive. More specifically, we believe that the guidance provided on 'audit follow up' is robust and will be critical for helping audit bodies to improve performance.
3. Do you agree with the content of the Specific Code which further prescribes the way auditors must carry out particular functions, as part of a co-ordinated approach to audit work?
Yes.
4. Do you agree with the proposed content of Schedule 1 of this Code, which prescribes the way in which certain other functions must be carried out?
Yes.
5. Do you agree with the proposed approach to the audit of small bodies prescribed in Schedule 2?
Yes. The approach for auditing small bodies appears sensible. However, there may be some scope for a read across to the recent changes outlined in the Local Government and Accountability Bill (England) for the audit of small bodies. For example, small audited bodies under £25,000 will not be subject to and audit. The Wales Audit Office may want to consider whether or not this would be a workable model for the audit of small bodies in Wales.
6. Do you agree with the proposed approach to exercising local government improvement audit, assessment and special inspection functions described in the draft Statement of Practice?
Yes.