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Departmental Audit

Work and Pensions written question – answered on 12th December 2011.

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Photo of Gareth Thomas Gareth Thomas Shadow Minister (Cabinet Office), Party Chair, Co-operative Party

To ask the Secretary of State for Work and Pensions what criteria (a) his Department and (b) its public bodies use when deciding whether and when to hold an internal audit; and if he will make a statement.

Photo of Chris Grayling Chris Grayling The Minister of State, Department for Work and Pensions

Internal audit services in the Department and its public bodies work to the Government Internal Audit Standards (GIAS), which are mandatory for all central Government Departments, agencies and executive non-departmental public bodies (NDPBs). These are published on the HM Treasury website at:

http://www.hm-treasury.gov.uk/d/internalaudit_gias_0211.pdf

This framework applies to in-house internal audit services, shared services and to outsourced arrangements, and requires that:

the chief audit executive must establish risk-based plans to determine the priorities of the internal audit activity, consistent with the organisation's goals (Standard 2010); the internal audit activity's plan of engagements must be based on a documented risk assessment, undertaken at least annually. The input of senior management and the board must be considered in this process (Standard 2010.A1); the chief audit executive must identify and consider the expectations of senior management, the board and other stakeholders for internal audit opinions and other conclusions (Standard 2010.A2); and the chief audit executive should consider accepting proposed consulting engagements based on the engagement's potential to improve management of risks, add value and improve the organisation's operations. Accepted engagements must be included in the plan (Standard 2010.C1).

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