Who is responsible for setting the internal audit scope?
The Academy Trust Handbook (ATH) states that all academy trusts must have a programme of internal scrutiny, so that it can provide independent assurance to the board that its financial and non-financial controls and risk management procedures are operating effectively. The trust must identify on a risk-basis (with reference to its risk register) the areas it will review each year, modifying its checks accordingly.
Ultimately, the board must oversee and approve the trust’s programme of internal scrutiny and ensure that risks are being addressed appropriately through internal scrutiny.
What areas should trustees consider when selecting the areas to be covered in the annual internal audit plan?
- As the ATH states, a boards first port of call should be to refer to the trust’s risk register and identify the greater risks facing the trust and seek to gain assurance on these.
- Where systems or procedures have changed, the board may wish to consider adding these areas to the internal audit plan to ensure the new systems and procedures have been implemented and are operating effectively.
- If any schools have recently transferred into the trust, then the board may wish to consider a financial control visit for the new schools to ensure that the trust’s policies, procedures and controls have been adopted correctly and are operating effectively.
- The next area the board should consider is any areas that weaknesses have been reported on either via previous internal audit visits or during the course of the external audit, to ensure these weaknesses have been appropriately addressed.
- The board should consider any new requirements made in the latest ATH to ensure they are fully compliant. We summarise the changes here.
- Another consideration that should be made is any areas that haven’t been reviewed as part of the internal audit cycle in some time.
The next step
For further information on the internal audit services we can provide to your school or trust, please contact Jenna Murphy on j.murphy@uhy-manchester.com, or your local education specialist.
