appointment of auditor engagment

Question

we need to appoint an auditor ie compliance
we would prefer to have a form engagement so he know what is expected from him and like wise the council but also who he should speak to if he has concerns about the clerk / finance etc
is there standard document that we could modify  for our council  by any chance at the moment clerk spoke to chap but nbo idea about what and engaged his service with no records or documents seems very very open to abuse

Answer 1

You should have already appointed an 'internal' auditor for this year.

The 'internal' auditor should be following recommended practice.

Page 26 onwards of https://www.nalc.gov.uk/library/our-work/jpag/3859-practitioners-guide-2023/file

Sets out what the internal auditors should be checking.

Comments

Although a lot of internal auditors just rush through it ticking boxes at random, collect their fee with as little work as possible, and then move onto to next Parish and repeat.

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They should also be following the auditors code of practice https://www.nao.org.uk/wp-content/uploads/sites/29/2015/03/Final-Code-of-Audit-Practice.pdf

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Sometimes the clue is in the actions of the auditor themselves.  Those that clearly set out what they are going to do and provide a template engagement letter as part of the quotation process, it can be an indication of the quality of the service you're going to get.  I agree the system is open to abuse and there are lots of councils who simply get a local person to sign the form without undertaking the work.

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“… councils who simply get a local person to sign the form without undertaking the work...”

Yes, seen it done.
Cllrs don’t want an IA that tells them they are inept. Auditors know if they submit a critical report their income stream will be curtailed.
Experienced 1 local clerk who was providing IA to numerous local PCs and they were ALL completely inept.
Cllrs didn’t (want to) know, just happy to be told everything is OK so that they could parrot the inept IA findings onto the AGAR.
DREADFUL state of affairs.

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we where astonished when we asked clerk how auditor was appointed and what engagment documents exist she said and i quote (i went to see him had a chat and thats that ) astonishing we expected a letter saying who he should copy emails to who he can raise concerns with and what we expected him to do as this is in my opinion a compliance check it was and is very much open to abuse so than you all for the input on this matter parish council can be very strange animals it seems

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The definitive guide to selecting, appointing and contracting the IA is set out in the JPAG. That’s the starting point + anything else a council might deem appropriate.
Unfortunately, I suspect many councils / clerks / Cllrs are blissfully unaware of the document….

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sorry what is jpag i am new to this matter

Answer 2

If the auditor hasn't been appointed by the Council, the Council doesn't need to pay the fee.

Comments

all of these are very helpful
our clerk appointed the last aduditor i asked do we have an exchange of letter or emails her answers staggered me  she said ;i went round to see him had a chat and that was that : and that is verbatim we would aks more of a cleaner or gardener