New Audit Code for NHS Foundation Trusts

Monitor, regulator of NHS foundation trusts, has published its latest, revised version of the code, which is similar in content to the previous version, with the following main amendments:

Quality report changes
Content has been added covering auditors’ new responsibilities in respect of the quality report, and examples where an audit certificate may be qualified, have been extended to include reference to where the opinion on the quality report has been qualified.

Changes in light of quality governance proposals for NHS foundation trusts
Auditors’ additional responsibilities in respect of the Statement on Internal Control (to be known as the Annual Governance Statement in the future) linked to Monitor’s proposals for including quality governance arrangements within the Statement on Internal Control.

Changes to reflect amendments in the Companies Act and Code of Audit Practice
• New guidance on the handover of audits (to align the code with the new requirements of the Companies Act in this area);
• Additional guidance on the handling of confidential data (to align the code with the Audit Commission’s Code of Audit Practice 2010 for local NHS bodies); and
• General updates to references to legislation, auditing standards, ethical standards and other external references where these have changed since the code was last issued.

Other changes
• Clarification of Monitor’s process for reviewing the quality of audit work undertaken each year, arising from suggestions made in the course of the 2010 quality review exercise undertaken on Monitor’s behalf by the Quality Assurance Directorate of the Institute of Chartered Accountants in England and Wales; and
• Additional guidance on Monitor’s expectations of auditors where a foundation trust has been found to be in significant breach in relation to targets and standards during the period subject to audit.

Download the latest version of the latest version of the Audit Code for NHS Foundation Trusts here.

One Response to New Audit Code for NHS Foundation Trusts

  1. Richard Gudoi says:

    Dear all ,
    The issue of audit clauses assures us that most of the audit clients have had in most cases raw deal yet clients pay lots of audit fees. This comes at the right time too late but it can give us direction regarding auditing gaps most clients exprerience. The issue of relying on audit assurances have landed many institutions into crisis like the Ernon case and Arthur Andersen saga . There are manay others in this line. So when the emphasise demands the report on the quality of audit assurances by the board is another angle twisted for the good value addition from top. Let it be in medical field, legal field, audit field, organisational management and all audit assurances demand good services from their professional experience. The lack of asking good and relevant questions by the board in the baordrooms have also made board rubber stamps. This is why the boards must be skilled, technical, understand the cture of the organisation etc. To me I feel that there should be a total overhaul of audit codes and practice to make them more accountable. Or we as auditors in my view don’t do what is enough to reveal the dirt in boards so the board management must ask the right questions and demand propoer management and organisational accountability. Thus why I’m saying that companies Act and audit practices must be studied highly independent of other accountancy qualitifications. I’m suggesting that we restructure the accountancy profession and have chartered audit professionals (CAP) whatever other name can come up with. This is a p[rofession that must be done after some one has qualified as a CPA,ACCA,CIA,CFE,CGFM,CISA,CIMA,CA,AGA,RGA,RA, name it? until we as auditors learn that we need restructuring among our professions we shall always give raw deal to those who demand our services. We need this prfession now not later. Thus why we have CFA,CIA,CFE,CISA, CIM,CIPS,CIB etc are secialised accountancy qualifications but for the AUDIT PROFESSION WE STILL FALL UNDER FINANCIALS AND BOOK KEEPERS. YET TO THOSE WHO PRACTICE AS AUDITORS , DO AUDITING PRACTICE FROM JUST TWO OR ONE MODULE OF EXTERNAL AUDITING WHICH I THINK IS NOT KNOWLEDGABLE ENOUGH TO DEAL WITH ISSUES OF RISK MANAGEMENT, FRAUD AND CORRUPTION, BUSINESS CONTINUITY, PUBIC SECTOR MANAGEMENT, ENVIRIONMENTAL, SO AUDIT PROFESSION IN ITS OWN RIGHT IS NEEDED. LET BE READ AS AN IDEA STARTED BY RICHARD GUDOI. SO Richard Gudoi Gid’Agui says there must be restructuring of the audit profgession to read Certified or Chartered Audit Professionals(CAP) to cater for only auditors not bookkeepers and financial experts and governance professionals. So to study CAP one needs t have quaifications like ACCA,CA,CIMA,CIA,CGA,CFSA,CISA,CPA,RA,etc. I well come all your comments in good faith.

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