Audit committees

The audit committee normally:

• advises the governing body on the appointment, remuneration, terms of reference, scope and results of internal and external audit
• oversees the implementation of the governing body's policy in the event of fraud or irregularity
• advises the governing body on the adequacy and effectiveness of corporate risk management arrangements.

Audit committees derive their authority from their independence of executive management. The membership always comprises a majority of lay governors and, as a rule, audit committee members do not also serve on executive committees of the governing body, such as the finance committee. The committee is serviced by an independent person, for example, the clerk to the governing body.

The committee gives a written opinion, at least annually, to the governing body on the adequacy and effectiveness of the institution's system of internal control and on the sufficiency of management's arrangements to secure value for money. This opinion is given in an annual report which is presented to the governing body by the chair of the audit committee. Once the governing body has considered the annual report, it is forwarded to HEFCE to inform the institutional risk assessment conducted by HEFCE’s assurance and institutional risk service.

Page last updated 22 July 2011