“This report makes for a rather worrying read, and not just because of the fragile financial position of many local authorities that we already knew about. Much more concerning are the extremely high proportion of internal audit functions unable to complete their internal audit plans for 2023/24 and the under-resourcing of such a critical area at a time when local authorities are under significant financial stress.”
“Internal audit is an important component of the governance infrastructure of local authorities, checking up on how well they are being managed both operationally and financially, on the effectiveness of governance and risk management processes, and whether internal financial controls are operating as designed.”
“Internal auditors must be free to look under rocks and identify where things are going wrong. They should not be afraid to speak out for fear of being fired, as is highlighted by the Chartered IIA report. Audit committees also need to be clear on the purpose and benefits of internal audit, and sufficiently strong to ensure that they can support their internal audit teams in making sure that no areas are off limits.”
ENDS
Notes to editors:
CONTACT: ICAEW media office, stephen.froome@icaew.com or 07970 402 073