On Board: A Guide for Board Members of Public Bodies in Scotland
Appendix 4.1 Audit Committee Checklist
Composition, Establishment and Duties of Audit Committees
|Does the Audit Committee meet regularly, at least three times a year?|
|Does at least one of the Audit Committee members have a financial background?|
|Does the Audit Committee have written terms of reference?|
|Are the terms of reference adopted by the full board and reviewed annually?|
|Are the Audit Committee members independent of the management team?|
|Are new Audit Committee members provided with some form of training?|
Does the Audit Committee's Terms of Reference include:
reviewing internal control?
reviewing Internal Audit?
reviewing External Audit?
reviewing the Standing Orders and Standing Financial Instructions?
ensuring that the Audit Committee operates within any relevant guidance/circulars issued by the Scottish Executive?
reviewing schedules of losses and compensations?
reviewing annual accounts?
|Does the Audit Committee report regularly to the board?|
Compliance with the Law and Regulations
Does the Audit Committee have a mechanism to keep it aware of topical legal and regulatory issues?
|Does the Audit Committee monitor that risk is controlled and possible litigation avoided?|
|Does the Audit Committee require an annual assurance report by the Chief Internal Auditor?|
|Does the Head of Internal Audit attend meetings of the Audit Committee.|
|Does the Audit Committee review annually the Internal Audit strategic and annual plans?|
|Does Internal Audit have a direct line of reporting to the Audit Committee?|
|Has the Audit Committee considered the appropriate level of detail it wishes to receive from Internal Audit?|
|Does the Audit Committee receive periodic reports from the Chief Internal Auditor?|
|Are the follow up audits by Internal Audit monitored by the Audit Committee?|
|Does the Audit Committee hold periodic private discussions with the Chief Internal Auditor?|
|Does the Audit Committee review the adequacy of staffing and resources of Internal Audit?|
|Has the Audit Committee evaluated whether the Internal Audit service complies with any mandatory audit standards?|
|Are any Internal Audit performance measures monitored?|
|Do formal terms of reference exist defining Internal Audit's objectives, responsibilities, authority and reporting lines?|
|Is there appropriate cooperation between the Internal and External Auditors?|
|Does the External Auditor attend meetings of the Audit Committee?|
|Does the External Auditor discuss his audit plan and strategy with the Audit Committee?|
|Has the Audit Committee discussed the VFM programme with the External Auditor?|
|Does the Audit Committee receive and monitor actions taken in respect of prior year VFM studies?|
|Does the Audit Committee review the External Auditor's report?|
|Does the Audit Committee hold periodic private discussions with the External Auditor?|
|Does the Audit Committee assess the performance of External Audit?|
|Does the Audit Committee have a secretary who is a senior officer?|
|Are Audit Committee papers distributed in sufficient time for members to give them due consideration?|
|Are Audit Committee meetings scheduled prior to important decisions on specific matters (within the locus of the Audit Committee) being made?|
|Is the timing of Audit Committee meetings discussed with all the parties involved?|
|Is the Audit Committee role in the approval of the annual accounts clearly defined?|
|Is an Audit Committee meeting scheduled to discuss proposed adjustments or issues arising from the audit?|
|Does the Audit Committee annually review the accounting policies of the public body?|
|Has the Audit Committee considered the costs of running the committee and are the costs appropriate to the perceived risks and the benefits?|
|Does the Audit Committee assess its effectiveness periodically?|
|Does the Annual Report and Accounts include a description of the Audits Committee's establishment and activities?|
Page updated: Tuesday, July 11, 2006