Annual Report Of The Auditing Committee Of The General Assembly And The Auditor Of Public Accounts

This report presents John Tiner's "Review of the National Audit Office's corporate governance". The head of the National Audit Office, the Comptroller and Auditor General (C&AG), is an Officer of the House of Commons appointed by the Queen, and is completely independent of Government and enjoys complete discretion over the discharge of his functions. The current C&AG has put in place a number of governance processes, but in their effectiveness these fall short of what is currently best practice. The NAO must remain independent, but work within systems of governance that are consistent with best practice, and follow relevant auditing and professional standards. The main proposals are: (1) the NAO should be formed as a body corporate with a governing board comprising a majority of independent non executive directors. Its main functions should be to set the strategy of the Office, support and oversee the work of the C&AG, ensure the Office conducts its business in an economic, efficient and effective way and satisfy itself that the systems of governance and internal controls operate effectively and to the highest standards. (2) The Chief Executive (the C&AG) should have complete personal discretion as to the audit judgements he reaches and the presentation of those judgements to the Public Accounts Committee and other committees of Parliament as may be necessary. (3) Both the Chairman and Chief Executive of the NAO Board would be appointed by the Queen on a motion from the House of Commons. The Chairman and the other non-executives should be appointed for a term of 3 years renewable once. The Chief Executive should be appointed for a fixed term of 8 years which cannot be renewed.