interpreting and prioritising financial and audit information Ian Carruthers Director, Policy and Technical, CIPFA

cipfa.org.uk Overview  How can PACs deal with and prioritise an increasing volume of audit output?  How can PACs best examine accounts and other information of a financial nature presented by departments to Parliament?

cipfa.org.uk Dealing with increasing volumes of audit output  Focus on matters of importance: ―Material expenditure / revenues ―Known fraud and other risks ―Current government initiatives or Change programmes  Review work on an exception basis  Lever the work of others (particularly the SAI)  Plan work rather than waiting for it to happen

cipfa.org.uk Types of audit reporting  Financial audit v Performance audit  Other types (forensic, environmental, IT)  Single entity focus v cross-cutting thematic studies  Critical review v best/good practice  General PFM v specific policy effectiveness

cipfa.org.uk Examining accounts and other financial information  Quality of the accounts and supporting information – advocacy role: ―National and international standards (IPSASs) ―Limitations of cash-based reporting ―Alignment of estimates / budgets / accounts ―Narrative / performance reporting  Develop financial expertise on the PAC  Lever the work of others (the SAI, other parliamentary advisers, and other sources)

cipfa.org.uk What information is included?

cipfa.org.uk Using the accounts  What do the accounts tell us?  What do the audit findings tell us?  How are the accounts being used to inform decision making?

cipfa.org.uk Summary  Plan the work – focus on areas of importance  Decide on the balance of types of audit reporting  Press for improvements in accounts quality  Develop financial expertise on the PAC  Understand what information is included in the accounts and other reports  Ensure information is used for decision making