Does public sector audit differ from private sector audit?
There are a few key differences between public sector and private sector audit. The first thing to note is that we are appointed as external auditors by the Audit Commission, (or in Scotland, Audit Scotland and the Accounts Commission for Scotland) to many health and local government bodies, rather than by the organisations themselves. This gives us an additional degree of independence. Secondly, the Audit Commission’s Code of Audit Practice, (or in Scotland, Audit Scotland’s Code of Audit Practice) sets out our audit responsibilities, which are much wider than in a traditional financial statements audit. These responsibilities centre on the use of resources and the financial statements (including the Statement of Internal Control). The audit regime is wider to provide public accountability for the taxpayer’s money that is spent by these organisations. There is an overriding need to maintain the integrity of public funds and to help ensure that taxpayers are receiving value for money.
