We are testing a new beta website for gov.scot go to new site

On Board: A Guide for Board Members of Public Bodies in Scotland

Listen

Appendix 4.1 Audit Committee Checklist

Composition, Establishment and Duties of Audit Committees

Ref.

Good Practice

Yes

No

N/A

Comments Action

1.1

Does the Audit Committee meet regularly, at least three times a year?

1.2

Does at least one of the Audit Committee members have a financial background?

1.3

Does the Audit Committee have written terms of reference?

1.4

Are the terms of reference adopted by the full board and reviewed annually?

1.5

Are the Audit Committee members independent of the management team?

1.6

Are new Audit Committee members provided with some form of training?

1.7

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?

1.8

Does the Audit Committee report regularly to the board?

Compliance with the Law and Regulations

Ref.

Good Practice

Yes

No

N/A

Comments Action

2.1

Does the Audit Committee have a mechanism to keep it aware of topical legal and regulatory issues?

Internal Control

Ref.

Good Practice

Yes

No

N/A

Comments Action

3.1

Does the Audit Committee monitor that risk is controlled and possible litigation avoided?

3.2

Does the Audit Committee require an annual assurance report by the Chief Internal Auditor?

Internal Audit

Ref.

Good Practice

Yes

No

N/A

Comments Action

4.1

Does the Head of Internal Audit attend meetings of the Audit Committee.

4.2

Does the Audit Committee review annually the Internal Audit strategic and annual plans?

4.3

Does Internal Audit have a direct line of reporting to the Audit Committee?

4.4

Has the Audit Committee considered the appropriate level of detail it wishes to receive from Internal Audit?

4.5

Does the Audit Committee receive periodic reports from the Chief Internal Auditor?

4.6

Are the follow up audits by Internal Audit monitored by the Audit Committee?

4.7

Does the Audit Committee hold periodic private discussions with the Chief Internal Auditor?

4.8

Does the Audit Committee review the adequacy of staffing and resources of Internal Audit?

4.9

Has the Audit Committee evaluated whether the Internal Audit service complies with any mandatory audit standards?

4.10

Are any Internal Audit performance measures monitored?

4.11

Do formal terms of reference exist defining Internal Audit's objectives, responsibilities, authority and reporting lines?

4.12

Is there appropriate cooperation between the Internal and External Auditors?

External Audit

Ref.

Good Practice

Yes

No

N/A

Comments Action

5.1

Does the External Auditor attend meetings of the Audit Committee?

5.2

Does the External Auditor discuss his audit plan and strategy with the Audit Committee?

5.3

Has the Audit Committee discussed the VFM programme with the External Auditor?

5.4

Does the Audit Committee receive and monitor actions taken in respect of prior year VFM studies?

5.5

Does the Audit Committee review the External Auditor's report?

5.6

Does the Audit Committee hold periodic private discussions with the External Auditor?

5.7

Does the Audit Committee assess the performance of External Audit?

Administrative Arrangements

Ref.

Good Practice

Yes

No

N/A

Comments Action

6.1

Does the Audit Committee have a secretary who is a senior officer?

6.2

Are Audit Committee papers distributed in sufficient time for members to give them due consideration?

6.3

Are Audit Committee meetings scheduled prior to important decisions on specific matters (within the locus of the Audit Committee) being made?

6.4

Is the timing of Audit Committee meetings discussed with all the parties involved?

6.5

Is the Audit Committee role in the approval of the annual accounts clearly defined?

6.6

Is an Audit Committee meeting scheduled to discuss proposed adjustments or issues arising from the audit?

6.7

Does the Audit Committee annually review the accounting policies of the public body?

Other Issues

Ref.

Good Practice

Yes

No

N/A

Comments Action

7.1

Has the Audit Committee considered the costs of running the committee and are the costs appropriate to the perceived risks and the benefits?

7.2

Does the Audit Committee assess its effectiveness periodically?

7.3

Does the Annual Report and Accounts include a description of the Audits Committee's establishment and activities?