interpreting and prioritising financial and audit information

Ian CarruthersDirector, Policy and Technical, CIPFA

cipfa.org.uk

Overview

How can PACs deal with and prioritise an increasing volume of audit output?

How can PACs best examine accounts and other information of a financial nature presented by departments to Parliament?

cipfa.org.uk

Dealing with increasing volumes of audit output

Focus on matters of importance:

― Material expenditure / revenues

― Known fraud and other risks

― Current government initiatives or Change programmes

Review work on an exception basis

Lever the work of others (particularly the SAI)

Plan work rather than waiting for it to happen

cipfa.org.uk

Types of audit reporting

Financial audit v Performance audit

Other types (forensic, environmental, IT)

Single entity focus v cross-cutting thematic studies

Critical review v best/good practice

General PFM v specific policy effectiveness

cipfa.org.uk

Examining accounts and other financial information

Quality of the accounts and supporting information – advocacy role:

― National and international standards (IPSASs)

― Limitations of cash-based reporting

― Alignment of estimates / budgets / accounts

― Narrative / performance reporting

Develop financial expertise on the PAC

Lever the work of others (the SAI, other parliamentary advisers, and other sources)

cipfa.org.uk

What information is included?

cipfa.org.uk

Using the accounts

What do the accounts tell us?

What do the audit findings tell us?

How are the accounts being used to inform decision making?

cipfa.org.uk

Summary

Plan the work – focus on areas of importance

Decide on the balance of types of audit reporting

Press for improvements in accounts quality

Develop financial expertise on the PAC

Understand what information is included in the accounts and other reports

Ensure information is used for decision making