8. Audit Requirements
8.1. The audit framework for the University within which the internal and external auditors operate is set out in the Accountability and Audit Code of Practice (HEFCE 2004/27) established under the Financial Memorandum between HEFCE and higher education institutions. Both internal and external audit constitute key elements of good corporate governance arrangements within the University.
8.2. The University is required by its Financial Memorandum with the Funding Council and by the Funding Council’s (Accountability and Audit) Code of Practice to appoint an Audit Committee. The Committee is independent, advisory and reports to Council. It provides advice and recommendations to Council on the appointment of both external and internal auditors. It has the right of access to obtain all the information it considers necessary and to consult directly with the internal and external auditors.
8.3. Audit Committee reviews the University’s annual financial statements prior to consideration by Strategy, Performance and Resources Committee on whose recommendation they are submitted to the Council for approval.
8.4. Further details of the role of Audit Committee.
8.5. External audit – The appointment of external auditors will take place annually and is the responsibility of the Council. The Council will be advised by the Audit Committee.
8.6. The primary role of external audit is to report on the University’s financial statements and to carry out such examination of the statements and underlying records and control systems as are necessary to reach their opinion on the statements and to report on the appropriate use of funds. Their duties will be in accordance with advice set out in the Funding Council’s (Accountability and Audit) Code of Practice and the Auditing Practices Board’s statements of auditing standards.
8.7. Further information on the role of the external auditors.
8.8. Internal audit – The internal auditor is appointed by the Council on the recommendation of Audit Committee. The University’s financial memorandum with the Funding Council requires that it has an effective internal audit function and their duties and responsibilities must be in accordance with advice set out in the Funding Council’s (Accountability and Audit) Code of Practice.
8.9. The main responsibility of internal audit is to provide the Council, the Vice-Chancellor and Chief Executive and senior management with assurances on the adequacy of the internal control system. The internal audit service remains independent in its planning and operation but has direct access to the Council, the Vice-Chancellor and Chief Executive and Chair of the Audit Committee. The internal auditor will also comply with HEFCE’s guidance for internal auditors and with the Institute of Internal Auditors’ Guidance on Risk Based Internal Auditing.
8.10. as 8.7 above.
8.11. External auditors and internal auditors shall have authority to:
- Access the University’s premises at reasonable times;
- Access all assets, records, documents and correspondence relating to any financial and other transactions of the University;
- Require and receive such explanations as are necessary concerning any matter under examination;
- Require any employee of the University to account for cash, stores or any other University property under his or her control;
- Access records belonging to third parties, such as contractors, when required.
8.12. Other Auditors – The University may, from time to time, be subject to audit or investigation by external bodies such as the funding bodies, National Audit Office, European Court of Auditors, HM Revenue and Customs. They have the same rights of access as external and internal auditors.
