Audit - frequently asked questions
1. What is the difference between internal and external audit?
2. Why are internal audits required?
3. What are the benefits of being audited?
4. How long can the audit take?
5. What is the benefit of completing the AAQ? (Audit Appraisal Questionnaire)
6. How do I contact audit services?
1. What is the difference between internal and external audit?
Internal Audit is an independent service to management that examines the systems in place within an organisation and the risks attached to each system. These systems may be financial, such as payroll, or non-financial, such as estates management or health and safety. Internal Audit provides independent assurance on the controls in place to manage the risks, and whether the controls are operating in practice.
The Institute of Internal Auditors defines internal audit as:
“An independent, objective assurance and consulting activity designed to add value and improve an organisation’s operations. It helps an organisation accomplish its objectives by bringing a systematic, disciplined approach to evaluate and improve the effectiveness of risk management, internal control, and governance processes.”
External auditors on the other hand look at the financial accounts of the organisation, often placing reliance on the work carried out by Internal Audit on the control framework. Therefore Internal Audit has a much broader role.
2. Why are internal audits required?
The public want and need to be assured that companies and public sector organisations are being properly governed. As public sector organisations are funded through public funds, it is essential that there are monitoring arrangements in place to confirm that funds are being used appropriately. Internal audit visits form part of these monitoring arrangements. The internal control and risk management are the foundations of good governance.
Internal audit will help to drive improvements in overall performance, which will help the authority to achieve its aims and provide efficient and effective delivery of services.
Internal audit is an integral part of an effective corporate governance framework. In addition, the County Treasurer is legally required to provide an internal audit service to the County Council.
3. What are the benefits of being audited?
Audit provides an independent and objective review, that will give you assurance on the adequacy of controls, but also highlight any area where improvements are necessary to address the risks.
4. How long can the audit take?
We carry out different types of audits, which range from establishment audits to systems audits, themed audits and contract audit.
Depending on the type of audit we are carrying out, audits can take from half a day on site which would cover one system for a themed audit, to one or more days on site for establishment visits. This visit might be carried out by one or more auditors. Systems audits can take considerably longer.
You will be notified in the audit outline how long audit staff will be on site and perform tests.
5. What is the benefit of completing the AAQ? (Audit Appraisal Questionnaire)?
We value feedback on our services and we would appreciate it if our customers could complete the audit appraisal questionnaire, including any comments you may have. Your personal data will not be used for any other purpose.
Any scores of 2 or less in the audit appraisal questionnaire will be classed as a complaint and we will follow them up with you to establish how we can improve the service in future.
6. How do I contact audit services?
If you would like to contact us to find out more information about Hampshire Audit Services please contact the team on 01962 846072 or email us on audit.services@hants.gov.uk
Further information is also available on our website.
Hampshire County Council, The Castle, Winchester, Hampshire, SO23 8UJ
This page was last updated on 30 December 2009. © Copyright Hampshire County Council 2012.