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Issue - meetings
Grant Thornton - Enquiries of Management and Audit Committee As Those Charged With Governance
Meeting: 24/03/2014 - Audit Committee (Item 95)
Additional documents:
- Appendix A - Management Response, item 95
PDF 106 KB View as HTML (95/2) 36 KB
- Appendix B - Chairman's Response, item 95
PDF 90 KB View as HTML (95/3) 25 KB
Minutes:
The Committee considered the report of the Head of Finance and Resources setting out draft responses to the External Auditor’s enquiries of those charged with governance. It was noted that:
· To comply with International Auditing Standards, and as part of the year end work, the External Auditor needed to:
Establish an understanding of the management processes in place to detect fraud and ensure compliance with legislation and regulation;
Make enquiries of management as to their knowledge of any actual, suspected or alleged fraud;
Document management’s view on some key areas affecting the financial statements; and
Gain an understanding of how the Audit Committee maintained oversight of these processes.
· Two draft responses had been prepared; one on behalf of management and one on behalf of the Chairman who had suggested some amendments which would be incorporated. Since it was not yet the end of the financial year, the responses would be finalised and circulated once it was confirmed that no new issues or changes in circumstances had arisen.
In response to a question by a Member about the detail required, the representative of Grant Thornton (the External Auditor) explained that auditors were governed in their work by auditing standards and they were required to ask the same questions every year even though they might suspect that the answers would be the same. Grant Thornton did not have any concerns about the areas they were enquiring about, and had had no issues in the past, but were required to ask the questions to update their understanding. This two way communication was also intended to support the Audit Committee in fulfilling its responsibilities in relation to the financial reporting process.
RESOLVED: That the contents of the draft responses to the External Auditor’s enquiries of those charged with governance be noted.