Audit

Audit Committee:

It is a Scottish Funding Council (SFC) requirement that all Higher Education institutions in Scotland appoint an Audit Committee.

The role of the Audit Committee is to oversee the effectiveness of the University’s, risk management, control and governance arrangements and to provide assurance to the SFC that the institution has arrangements in place to promote economy, efficiency and effectiveness in the conduct of all aspects of its business.

Internal Audit:

Internal audit provides the University Court, through the Audit Committee, with an independent and objective opinion on governance, risk management and internal control and their effectiveness in achieving the organisation’s agreed objectives. It also has an independent and objective advisory role to help senior managers improve governance, risk management and internal control. The work of internal audit forms a part of the University’s overall assurance framework.

To ensure objectivity, the University outsources its Internal Audit function. In the academic year 2012-13, Internal Audit services are provided by Mazars. Mazars take a risk-based approach to Internal Audit, and use the University’s Corporate Risk Register as the basis for a three-yearly Audit Needs Assessment, from which the Annual Plan is drawn, in consultation with University senior management.

Each Annual Plan is reviewed and revised to reflect any changes in the University’s risk profile in addition to the current issues that it faces. A typical Annual Plan will include: the review of two Schools; aspects of Governance; Finance / internal controls; IT-focussed audits; reviews of policies and procedures; and the University’s preparedness to meet new challenges, such as UKBA requirements or the Bribery Act.

Further details are available from the Clerk to the Audit Committee Ruth MacLure, who coordinates the Internal Audit Plan on behalf of the University.

External Audit:

In the academic year 2012-13, external audit services are provided to the University by KPMG.

External Audit is focussed on the production of the audited annual financial statements at the end of the University financial year (31 July). It is the External Auditor’s role to confirm that the accounting policies, judgements and estimates made by the University’s Finance managers are appropriate and in line with generally accepted practice.

Following approval by Court, the External Auditor’s report forms part of the University’s annual financial assurance submission to the SFC.