Issue - meetings

This report sets out the approach being taken by the Council’s external auditors, Grant Thornton, to the audit of the accounts for 2014/15.

The Committee considered a report which set out the approach being taken by the Council’s External Auditors, Grant Thornton, to the audit of the accounts for 2014/15.

Ms. Elizabeth Olive, Senior Manager, Grant Thornton UK LLP was in attendance.  The Plan related to the audit of the Council’s financial accounting arrangements and arrangements for securing economy, efficiency and effectiveness in its use of resources (known as the Value for Money conclusion).

Ms. Olive highlighted that two significant risks had been identified in relation to (1) the risk that revenue cycles could include fraudulent transactions and (2) the management override of controls. However, Ms. Olive further highlighted that the Plan stated that, having considered the risk factors set out in ISA240 and the nature of the revenue streams at Epsom and Ewell Borough Council, the auditors had determined that the risk of fraud arising from revenue recognition could be rebutted for the reasons given in the Plan.  Ms. Olive went on to state that no issues had arisen so far regardig the work undertaken in relation to the scrutiny of the Council’s journals. The Committee was pleased to note that no significant risks/issues had been identified in other areas.  Year-end fieldwork on the final accounts was due to commence in July 2015.

In terms of value for money, it was noted that this had a particular definition within the audit environment – it was about challenging process and assumptions not decisions or services. Auditors might suggest best practice in a certain area but would not comment on the outcome of a particular process, for example, around consultation.

The Director of Finance and Resources confirmed that, whilst one would always like fees to be less, the audit fees were significantly cheaper than they used to be.

Accordingly, the Committee received the Audit Plan for 2014/15.