Role of the Internal and External Auditor

Question

I asked a question a while ago about parish councils clerks being self-employed. Today I found out that a clerk at a nearby parish council is also self-employed!

 So it begs the question what is the role of the Internal and External Auditors? Who should be ensuring and enforcing what is clearly published on the HMRC website?

 If have been in contact with the External Auditor, new for this year, and they have written to my local parish council as follows (the highlighting and case are as written by the external auditor):-

THE COUNCIL SHOULD BE REGISTERED AS THE CLERK’S EMPLOYER WITH HMRC – IF THIS HAS NOT BEEN THE CASE DURING 2017/18, THE COUNCIL MUST THEREFORE ANSWER ‘NO’ TO ASSERTION 3 OF THE ANNUAL GOVERNANCE STATEMENT AND SHOULD AMEND THE ARRANGEMENT. IF THE COUNCIL ANSWERS ‘YES’ AND WE ARE AWARE OF THIS DURING OUR REVIEW, WE WILL QUALIFY OUR OPINION.
HOWEVER, WE NOTE THAT THE 2016/17 ANNUAL RETURN, EXTERNAL AUDITOR REPORT AND ANNUAL INTERNAL AUDITOR REPORT ARE ON THE COUNCIL WEBSITE AND THAT THE INTERNAL AUDITOR HAS CONCLUDED THAT PAYE AND NI REQUIREMENTS WERE PROPERLY APPLIED DURING 2016/17

 The Internal Audit report clearly states the clerk is self-employed!!

Answer 1

The case of Lydney Town Council in 2012 "Public Interest Report" is worth reading. The External Auditor produced a report on failings including those affecting the Clerk. These included failures to properly contract the Clerk and with impacts on retirement etc.

Comments

As I recall residents are allowed a certain time period to examine a PCs annual accounts and make representations to the External Auditor . Have they any scope to act outside of these parameters. I wrote recently about an issue in which I thought the PC  were operating ultra vires and was told "too late wait until next year". Or is this  may be more of a  a matter for the internal auditor? (and is he year round)