Publication - Advice and guidance
Audit and Assurance committee handbook
Guidance on the principles and best practise for the organisation of Audit and Assurance committees.
Annex H: Self-assessment checklist
| Role and remit | YES/NO/NA | Comments/Action |
|---|---|---|
| Does the committee have written terms of reference? | ||
| Do the terms of reference cover the core functions as identified in the SG Audit and Assurance Committee Handbook? | ||
| Are the terms of reference approved by the Audit and Assurance Committee and reviewed periodically? | ||
| Has the committee been provided with sufficient membership, authority and resources to perform its role effectively and independently? | ||
| Does the body's governance statement mention the committee's establishment and its broad purpose? | ||
| Does the committee periodically assess its own effectiveness? | ||
| Membership, induction and training | YES/NO/NA | Comments/Action |
| Has the membership of the committee been formally agreed by the management board and or Accountable Officer and a quorum set? | ||
| Are members appointed for a fixed term? | ||
| Does at least one of the committee members have a financial background? | ||
| Are all members, including the Chair, independent of the Executive function? | ||
| Are new committee members provided with an appropriate induction? | ||
| Has each member formally declared his or her business interests? | ||
| Are members sufficiently independent of the other key committees of the Board? | ||
| Has the committee considered the arrangements for assessing the attendance and performance of each member? | ||
| Meetings | YES/NO/NA | Comments/Action |
| Does the committee meet regularly, at least four times a year? | ||
| Do the terms of reference set out the frequency and broad timing of meetings? | ||
| Does the committee calendar meet the body's business and governance needs, as well as the requirements of the financial reporting calendar? | ||
| Are members attending meetings on a regular basis and if not, is appropriate action taken? | ||
| Does the Accountable Officer attend all meetings and, if not, is he/she provided with a record of discussions? | ||
| Does the committee have the benefit of attendance of appropriate officials at its meetings, including representatives from internal audit, external audit and finance? | ||
| Internal control | YES/NO/NA | Comments/Action |
| Does the committee consider the findings of annual reviews by internal audit and others, on the effectiveness of the arrangements for risk management, control and governance? | ||
| Does the committee consider the findings of reviews on the effectiveness of the system of internal control? | ||
| Does the committee have responsibility for review of the draft governance statement and does it consider it separately from the accounts? | ||
| Does the committee consider how accurate and meaningful the governance statement is? | ||
| Does the committee satisfy itself that the arrangements for risk management, control and governance have operated effectively throughout the reporting period? | ||
| Has the committee considered how it should coordinate with other committees that may have responsibility for risk management and corporate governance? | ||
| Has the committee satisfied itself that the body has adopted appropriate arrangements to counter and deal with fraud? | ||
| Has the committee been made aware of the role of risk management in the preparation of the internal audit plan? | ||
| Does the committee's terms of reference include oversight of the risk management process? | ||
| Does the committee consider assurances provided by senior staff? | ||
| Does the committee receive and consider stewardship reports from senior staff in key business areas such as Finance, HR and ICT? | ||
| Financial reporting and regulatory matters | YES/NO/NA | Comments/Action |
| Is the committee's role in the consideration of the annual accounts clearly defined? | ||
| Does the committee consider, as appropriate: | ||
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| Is an committee meeting scheduled to receive the external auditor's report to those charged with governance including a discussion of proposed adjustments to the accounts and other issues arising from the audit? | ||
| Does the committee review management's letter of representation? | ||
| Does the committee gain an understanding of management's procedures for preparing the body's annual accounts? | ||
| Does the committee have a mechanism to keep it aware of topical legal and regulatory issues? | ||
| Internal audit | YES/NO/NA | Comments/Action |
| Does the Head of Internal Audit attend meetings of the committee? | ||
| Does the committee consider, annually and in detail, the internal audit plan including consideration of whether the scope of internal audit work addresses the body's significant risks? | ||
| Does internal audit have a direct reporting line, if required, to the committee? | ||
| As well as an annual report from the Head of Internal Audit, does the committee receive progress reports from internal audit? | ||
| Are outputs from follow-up audits by internal audit monitored by the committee and does the committee consider the adequacy of implementation of recommendations? | ||
| If considered necessary, is the committee chair able to hold private discussions with the Head of Internal Audit? | ||
| Is there appropriate co-operation between the internal and external auditors? | ||
| Does the committee review the adequacy of internal audit staffing and other resources? | ||
| Are internal audit performance measures monitored by the committee? | ||
| Has the committee considered the information it wishes to receive from internal audit? | ||
| Has the committee considered formal terms of reference defining internal audit's objectives, responsibilities, authority and reporting lines? | ||
| External audit | YES/NO/NA | Comments/Action |
| Does the external audit representative attend meetings of the committee? | ||
| Do the external auditors present and discuss their audit plans and strategy with the committee (recognising the statutory duties of external audit)? | ||
| Does the committee chair hold periodic private discussions with the external auditor? | ||
| Does the committee review the external auditor's annual report to those charged with governance? | ||
| Does the committee ensure that officials are monitoring action taken to implement external audit recommendations? | ||
| Are reports on the work of external audit presented to the Audit and Assurance Committee? | ||
| Does the committee assess the performance of external audit? | ||
| Does the committee consider the external audit fee? | ||
| Administration | YES/NO/NA | Comments/Action |
| Does the committee have a designated secretariat? | ||
| Are agenda papers circulated in advance of meetings to allow adequate preparation by committee members and attendees? | ||
| Do reports to the committee communicate relevant information at the right frequency, time, and in a format that is effective? | ||
| Does the committee issue guidelines and/or a pro forma concerning the format and content of the papers to be presented? | ||
| Are minutes prepared and circulated promptly to the appropriate people, including all members of the Board? | ||
| Is a report on matters arising presented or does the Chair raise them at the committee's next meeting? | ||
| Do action points indicate who is to perform what and by when? | ||
| Does the committee provide an effective annual report on its own activities? | ||
| Overall | YES/NO/NA | Comments/Action |
| Does the committee effectively contribute to the overall control environment of the organisation? | ||
| Are there any areas where the committee could improve upon its current level of effectiveness? | ||
| Does the committee seek feedback on its performance from the Board and Accountable Officer? |