considered the report of the Head of Audit Partnership setting out
the revised Internal Audit Charter 2016/17.
The Deputy Head of
Audit Partnership presented the report and it was noted that:
The 2015/16 Charter was approved by the then Audit Committee in
March 2015, and was scheduled to be reviewed and, if necessary,
updated each year.
In addition to typographical corrections and standardisation of
terminology, more substantive amendments sought to build on
supplemental guidance issued by the Institute of Internal Auditors
acknowledging that Internal Audit services might often possess the
skills, knowledge and expertise to successfully take up broader
roles within an organisation, often referred to as “second
line of defence” roles.
At present Internal Audit did not occupy any roles that comprised
“second line of defence” functions, but the revised
Internal Audit Charter addressed the safeguards that would operate
if the Audit Partnership were to play a more prominent role in risk
management and counter fraud, including ownership of relevant
corporate policies such as Whistleblowing.
The Head of Audit Partnership was satisfied that the Partnership
currently operated with the required independence and freedom from
interference and that it would continue to do so, subject to the
described standards, in the event of it being asked to take on
In response to
questions, the Committee was informed that:
With regard to significant requests for advice, defined as those
which required the purchase of additional resources or amendments
to the agreed Audit Plan, the Head of Audit Partnership would
consult with the Chairman and Members of the Audit, Governance and
Standards Committee before accepting the engagement to ensure that
they were satisfied that it represented an effective use of
resources compared to other projects.
This was on the basis that it might not always be possible to wait
until the next scheduled meeting of the Committee.
The purpose of the external assessment referred to in paragraph 43
of the revised Charter was to provide independent assurance that
the Partnership was operating in accordance with the Public Sector
Internal Audit Standards. The most
recent assessment was completed by the Institute of Internal
Auditors in 2014 with the results reported to the then Audit
1. That the Internal Audit Charter
2016/17, attached as Appendix II to the report of the Head of Audit
Partnership, be approved.
2. That the Audit
Partnership’s view that the Partnership is operating with
sufficient independence and freedom from managerial interference to
fulfil its responsibilities in line with Public Sector Internal
Audit Standards, and will continue to do so, be noted.