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External Audit Plan Progress Report 2018/19

Meeting: 30/05/2019 - Audit Committee (Item 41)

41 External Audit Plan Progress Report 2018/19 (EY) pdf icon PDF 251 KB

The purpose of the ATTACHED report is to provide the Audit Committee with an overview of the stage reached in the Ernst & Young 2018/19 audit and ensure it is aligned with the Committee’s service expectations.

Minutes:

The External Audit Manager, Ernst & Young, reported on their progress against the 2018/19 Audit.  They noted that this covered both Financial Statements and Value for Money and confirmed the risks communicated in the audit plan were unchanged.

 

Finally they reported that the dates for site visits had been revised and would be undertaking remote work in advance of this.

 

Members queried whether the Pension valuation would be revised as had occurred last year.  The External Auditor stated that their position was unchanged that, as they had the benefit of end of year estimates, these would be compared to the earlier estimates and an assessment made of whether the variance was significant.  Officers reported that the variation this year was below the level of materiality and that a decision would be made to ensure consistency in reporting.  It was noted that a regular triennial review was undertaken and that the current target to cover the pension deficit was 18 years.

 

RESOLVED that the information contained in the 2018/19 Audit Progress Report from Ernst and Young be noted.


Meeting: 30/01/2019 - Audit Committee (Item 436)

436 External Audit Plan 2018/19 (Draft)(EY) pdf icon PDF 5 MB

The ATTACHED Audit Plan sets out how Ernst & Young intend to carry out their responsibilities as external auditor. It provides the Committee with a basis to review the proposed audit approach and scope for the 2018/19 audit. It will also help ensure that this audit is aligned with the Committee’s service expectations.

Minutes:

The Audit Plan set out how the external auditors intended to carry out their responsibilities; provided the Committee with a basis to review the proposed audit approach and scope for the 2018/19 audit; and also help to ensure that the audit was aligned with the Committee’s service expectations.

 

The External Auditor, in presenting the report, highlighted that a number of the risks shown such as mis-statement due to fraud or error were an inherent part of the international auditing standards and not specific to the Council.  The areas of concern related in many cases to the Council being active in a more commercial environment through its investments.  A need for a better understanding of the structure and relationships had been identified as this could have an impact on control.  The External Auditor confirmed that although some items were currently showing as red risks this reflected the current situation and would be revised once additional information had been received.

 

Members noted concern about the possible pension adjustment which had occurred during the previous audit and the increased uncertainty due to Brexit.  The External Auditor confirmed that the adjustment was likely to be included again if it represented a significant change.  Overall the materiality levels had remained the same and the overall risk on Value for Money was being met through the Council having in place “proper arrangements”.

 

The fee level had been reduced in line with the contracted agreement.  The Group Accounts would be audited and charged separately.

 

RESOLVED that the External Auditors’ proposed Audit Plan for the Year ending 31 March 2019 be noted.