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Appendix 4.1 Audit Committee Checklist
Composition, Establishment and Duties of Audit Committees
Ref. | Good Practice | Yes | No | N/A | Comments Action |
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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 |
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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 |
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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 |
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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 |
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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 |
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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 |
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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? | | | | |
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