Internal audit
Internal audit service details
Annual Audit Plan
- Undertake a risk based review to inform the plan, including discussions with senior officers
- Production of a realistic audit plan that ensures appropriate coverage to inform an annual opinion that is flexible to respond to changes as they arise
- Monitor performance against the plan and working with the team to ensure delivery
- Manage the plan to accommodate in-year changes in response to changing circumstances and risk profiles
- Undertake benchmarking and report results
Delivery
- Delivery of a full range of audits by Stoke’s experienced and qualified auditors using a comprehensive risk based approach
- Provide assurance on key financial systems using a ‘health check’ approach for well controlled systems with low residual risk
- Quality assurance (including report sign off) undertaken for all audit work by Stoke’s qualified Principal Auditors (and the Head of Internal Audit if required)
- Undertake verification work to ensure recommendations are implemented without the need for resource intensive follow up audits
Reporting
- Management reporting as required (frequency and content to be agreed)
- Quarterly updates on internal audit activity to the Audit Committee
- Production of an annual report to include an overall opinion on the authority’s control environment
- Production of the authority’s Annual Governance Statement
- Liaison with external auditors as required
Compliance with Public Sector Internal Audit Standards
- Full compliance with the Standards, ensuring that all recommendations from self-assessments and external reviews are implemented.
- Production of an annual Internal Audit Charter
Systems
- Full use of Stoke’s audit management systems
- Access for management to update recommendations to aid reporting (TBC following implementation of required web based functionality)
Links to Corporate Fraud / HR
- Stoke’s internal audit team have strong links with corporate fraud and HR to provide a joined up service
- Where control weakness are identified through corporate fraud or HR investigations, these can be linked with internal audit support as required
Governance
- Communicate with the Section 151 Officer on any governance related issues (frequency and format to be agreed)
- Representation at the Audit Committee by the Head of Internal Audit or a representative to present all reports on internal audit and corporate fraud activity.
- To facilitate the Audit Committee to undertake a self-assessment of good practice and to complete the Audit Committee Members Skills & Knowledge Framework, as detailed in CIPFA’s “Audit Committees: A Practical Guide for Local Authorities & Police”, 2018.
- Design and present appropriate training to the Audit Committee based on the outcome of the skills and knowledge framework assessment.
Policies
To review policies to include:
- Whistleblowing Policy
- Counter Fraud Statement
- Corporate Fraud, Corruption & Error Strategy
- Anti-Money Laundering Policy
- Anti-Bribery Policy
- Fraud Response Plan
IT Assurance
- Stoke currently undertake IT audits utilising the skills of in-house staff, supplemented with external support where required
- Stoke have recently commissioned an IT Needs Assessment to cover the next three years activity
- This arrangement can be extended to cover your authority’s IT assurance requirements
Data Analytics
Stoke has recently invested in the latest version of IDEA, a powerful data analysis tool that quickly analyses 100% of data, improves data integrity and provides quick analysis
- This will enable audits to be undertaken more effectively and efficiently and was being trialled with good results across a number of Stoke’s financial systems audits during 2018/19.
- Stoke is currently developing its data analytics strategy with the vision to move to a continuous audit approach. The strategy can be developed jointly to provide benefits across your authority.
Risk Management
The team are able to provide a range of services on the formulation, development and promotion of a corporate risk management strategy which could include promoting risk management awareness and good practice to reduce the council’s cost of risk. A tailored package can be offered subject to your individual requirements.