The National Audit Office (NAO) Self-Assessment Checklist has been designed to help Audit Committees in central government assess how well they apply good practice. The criteria used by the NAO were derived largely from the Audit Committee Handbook (March 2007), published by HM Treasury. The HMT Handbook highlights the following five good practice principles:

In addition, the checklist also provides questions to enable Audit Committees to assess the role of the Chair and the provision of appropriate secretariat support, as the NAO have identified these as key areas for an effective Audit Committee to manage.

In addition to the checklist mentioned above, the NAO has complied a number of practical top tips for Audit Committees from the good practice shared in facilitated, syndicated-based workshops in the past and from other meetings with non-executive directors.

High quality and proportionate internal control systems will help organisations achieve their aims. The Statement on Internal Control (SIC) is a public accountability document that describes the effectiveness of internal controls in an organisation and is personally signed by the Accounting Officer. The NAO have produced a guide to help Audit Committees add value to their organisations in this area, by identifying good practice in corporate governance, risk management and internal controls, as well as the disclosure of these within the SIC.

The constitution and role of Audit Committees in central government has developed significantly in recent years. There has also been an ongoing initiative to embed effective risk management at all levels of the management of government organisations, which increases the need for explicit assurance about risk, control and governance in the organisation. Consequently the value that Accounting Officers and Boards place on the work of Audit Committees has increased. The Treasury has produced the Audit Committee Handbook to help Audit Committees review the appropriateness and fitness for purpose of their constitution, membership and activities.

Best practice requires that every board should consider in detail what arrangements for its audit committee are best suited for its particular circumstances. Audit committee arrangements need to be proportionate to the task and will vary according to the size, complexity and risk profile of the organisation. The Financial Reporting Council have produced guidance to assist management boards in making suitable arrangements for their audit committees and to assist directors serving on audit committees in carrying out their role. The guidance is intended to assist boards when implementing the relevant provisions of the UK Corporate Governance Code.

The transition from UK Accounting standards to International Financial Reporting Standards (IFRS) and the IFRS version of the Treasury’s Financial Reporting Manual (IFReM) is the largest change to UK public sector financial reporting since the introduction of resource accounting. The National Audit Office therefore developed a readiness toolkit to help public sector organisations identify key issues and prepare for this change.

A Powerpoint presentation from Audit Scotland for management boards relating to the implementation of IFRS.