Audit management letters
External audit is an essential element in the process of accountability for public
money and makes an important contribution to the stewardship of public resources
and the corporate governance of public services.
Audit in the public sector is underpinned by three fundamental principles:
- auditors are appointed independently from the bodies being audited;
- the scope of auditors' work is extended to cover not only the audit of financial
statements but also value for money and the conduct of public business; and - auditors may report aspects of their work widely to the public and other key
stakeholders.
The duties and powers of auditors appointed by the Audit Commission are set out
in the Audit Commission Act 1998 and the Local Government Act 1999 and the
Commission's statutory Code of Audit Practice. Under the Code of Audit Practice,
appointed auditors are also required to comply with the current professional
standards issued by the independent Auditing Practices Board.
Appointed auditors act quite separately from the Commission and in meeting their
statutory responsibilities are required to exercise their professional judgement
independently of both the Commission and the audited body.
Download the Annual Audit and Inspection Letter 2005 
