Public Sector Accountability and Audit

Flashcards covering key definitions, principles, frameworks, and organizational roles in Scottish public sector accountability and public sector auditing.

Accountability

The state of being accountable, liable or answerable (Collins dictionary), which ensures those holding power for public services are responsible to the public, promoting transparency, trust, reducing corruption, and improving public service delivery.

Financial Accountability

A form of public sector accountability that involves responsible management of public funds with accurate reporting and auditing.

Ministerial Accountability

A form of public sector accountability where ministers are accountable to Parliament for the actions of Government.

Managerial Accountability

A form of public sector accountability that focuses on internal controls and performance management to ensure efficient operations.

Political Accountability

A form of public sector accountability in which elected officials answer to citizens and legislatures for decisions and governance outcomes.

Legal Accountability

A form of public sector accountability requiring organisations to demonstrate compliance with laws and regulations.

Social Accountability

A form of public sector accountability focused on showing responsiveness to public needs through citizen participation and feedback.

Ethical Accountability

A form of public sector accountability centered on acting in an ethical and responsible way.

Parliamentary Scrutiny

An accountability mechanism where Parliamentary Accounts and Audit Committees (such as the Public Audit Committee) enable ministers to review government expenditures and ensure transparency.

Transparency Initiatives

Accountability mechanisms, such as open data portals, that provide public access to government information to promote informed citizen engagement.

Citizen Engagement

An accountability mechanism involving public consultations and feedback platforms to empower citizens to influence decision-making processes.

External Audits

Audits conducted by independent audit bodies to assess financial management and regulatory compliance in public institutions.

Audit (HMRC Definition)

An audit defined by HMRC as the independent examination of, and expression of opinion on the financial statements of an organisation by an appointed auditor.

Audit (Financial Reporting Council Definition)

An audit defined by the Financial Reporting Council as a professional services engagement in which an auditor expresses a reasonable assurance opinion on whether the financial statements of an entity are true and fair, or free from material misstatement.

Value of Public Audit

The three pillars defined by audit.scot: 1. Independence (independent, evidence-based assessment of spending), 2. Assurance (annual financial and value for money audits), and 3. Confidence (scrutiny supporting trust, good governance, accountability, and improvement).

Internal Audit

A mandatory internal monitoring function for all public sector organisations that evaluates risk management, internal controls, and governance, which can be provided in-house, by an external firm, or via a shared service.

Audit Committee

A committee prevalent in all public sector organisations whose structure and membership vary (in local government mostly politically controlled) and whose minutes and reports are accessible to the public.

PAF Principle of Independence

A principle set by the Public Audit Forum requiring the auditor to be independent from the bodies being audited.

PAF Principle of Broad Scope

A principle set by the Public Audit Forum establishing that public audit covers not only financial statements but also regularity, propriety, and value for money.

PAF Principle of Transparency

A principle set by the Public Audit Forum ensuring the unrestricted ability of auditors to make audit results available to the public.

PAF Principle of Relevance

A principle set by the Public Audit Forum requiring auditors to be responsive to changing environments and emerging risks, communicating in a timely and effective way.

The 3 E's

The core criteria considered in public sector audit: Economy, Efficiency, and Effectiveness.

Auditor General for Scotland

An independent official recommended by the Scottish Parliament and appointed by the Crown who is responsible for the audit of all Scottish public sector bodies except local authorities.

Stephen Boyle

The current Auditor General for Scotland.

Accounts Commission

An independent body of 12 members recruited through a public appointments process for 4-year terms that holds Councils and local government bodies in Scotland to account by securing and reporting on their audits.

Audit Scotland

An independent public body that provides services to the Auditor General and the Accounts Commission to deliver financial and performance audits on public bodies, policies, major projects, and public services management.

Appointed Private Audit Firms in Scotland

Private firms appointed for 5-year terms to undertake public sector audits in Scotland, currently comprising EY, KPMG, Deloitte, Grant Thornton, Forvis Mazars, and Azets.

Public Sector Audit Structure in Scotland

The Scottish public audit relationship model where Audit Scotland services the Auditor General (auditing Scottish Government, NHS, and Further Education for the Scottish Parliament) and Controller of Audit / Accounts Commission (auditing Local Government and health integration boards) to inform the public.

Public Sector Audit Dimensions

The four activity areas reported by Audit Scotland in annual audits: Financial Sustainability, Financial Management, Vision, Leadership and Governance, and Use of Resources to Improve Outcomes.

Best Value

Arrangements evaluated and reported on specifically in Scottish local authority audits to ensure proper stewardship and outcome delivery.

Audit Reporting Outputs

The formal outputs produced during public sector audit reporting, including Audit certificates on annual accounts, Auditors final reports to Members, Management Letters and other reports to Officers, Strategic audit plans, Fraud and corruption returns, and Grant claim/return certifications.