Audit Committee Handbook - Scottish Government

Communication
PART 2: OPERATION OF CORE SCOTTISH GOVERNMENT AUDIT COMMITTEES
2.35 Core Scottish Government audit committees should ensure that they have effective communication
with the Principal/Portfolio Accountable Officer, Internal Audit Division, Audit Scotland, and other
stakeholders. In addition, the role of the Chair and provision of appropriate secretariat support are
important elements in achieving audit committee effectiveness. Good practice guidance on these
roles is provided in Annex J and Annex K.
2.36 The work of the core Scottish Government audit committees needs to be communicated appropriately
if it is to be effective. After each meeting of the audit committee minutes should be prepared,
highlighting advice to the relevant Accountable Officer and action points, and circulated to interested
parties, including Internal Audit Division and Audit Scotland. Individual PACs should ensure that
SGAC and other PACs are made aware, at the earliest opportunity, of any issues arising within its
area of responsibility that may have implications for the wider Scottish Government. Minutes of
SGAC meetings should be circulated to all members of the Scottish Government Strategic Board and
to the chairs of PACs.
Rights of Access
2.37 There should be mutual rights of access among each of the Chairs of the core Scottish Government
audit committees, the Principal/Portfolio Accountable Officer, Internal Audit Division and Audit
Scotland. Whether or not that right of access is exercised, there should be an annual bilateral meeting
between the Chair of each audit committee and each of these parties to ensure that there is a clear
understanding of expectations and mutual understanding of current issues.
Annual Reports
2.38 The SGAC should provide an annual report to the Principal Accountable Officer, timed to support
preparation of the Statement on Internal Control. This internal report needs to be open and honest
in presenting SGAC’s views if it is to be of real benefit to the Principal Accountable Officer.
2.39 The annual report should summarise the SGAC’s work for the year past, and present its opinion about:
• the comprehensiveness of assurances in meeting the Principal Accountable Officer’s needs;
• the reliability and integrity of these assurances;
• whether the assurance available is sufficient to support the Principal Accountable Officer in his/her
decision taking and accountability obligations;
• the implication of these assurances for the overall management of risk;
• any issues the SGAC considers pertinent to the Statement on Internal Control provided alongside
the Scottish Government consolidated accounts and any long term issues the committee thinks
the Principal Accountable Officer should give attention to;
• financial reporting for the year;
• the quality of both Internal and External Audit and their approach to their responsibilities; and
• the SGAC’s view of its own effectiveness, including advice on ways in which it considers it needs
to be strengthened or developed.
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