New guidance for academy schools on internal scrutiny
The new Academies Financial Handbook makes a number of changes to strengthen internal scrutiny within the sector.
From September 2020, your school’s external auditor will no longer be able to undertake internal audit activities as well. Our assistant director for audit and assurance, Ian, says:
"This separation of responsibilities will help to minimise possible threats to audit objectivity and independence.
"Internal and external audit are complementary functions and both are important for effective governance, however they fulfil different purposes.
"We see this change as an important step in helping to improve overall audit assurance."
What's the difference between internal and external audit?
Internal and external audit are quite different - as the names would suggest, one looks at the organisation from the inside, and the other from the outside.
External audit is more financial based, while internal audit focuses on day-to-day operations. While they are conducted by different organisations, the two should have a working relationship to ensure their work is coordinated and resources are used efficiently.
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