Annual report 2021/22

The value of an annual audit

statement-of-responsibility.pngFundamentally, the value of an audit lies in the fact that an audit has been done. Someone independent with specialist skills and training has tested a public organisation’s financial and performance information against robust standards and with a sceptical eye. They have provided their opinion and given the reader reasonable assurance that the information presented is fairly stated.

Beyond that intrinsic value, when auditors consider how fairly a public organisation has presented its financial position and its achievements, they also add value through reporting on:

  • what could be improved;
  • which controls could be stronger; and
  • whether the performance reported fairly reflects what the organisation has achieved.

However, fundamentally a public sector audit is about reporting to the governors of public organisations, Councils, Parliament, and through them to the public about whether the information a public organisation has provided on their performance is fairly stated. This allows them to hold these organisations to account for their performance.