This new guidance from CIPFA encourages local authorities to put in place an audit committee where they do not have one, and helps those with established committees to make them more effective.

Audit committees have been required in many organisations in both the private and public sectors for some time now, but local government has some ground to make up. Fewer then half the local authorities in England and Wales have an audit committee. Yet audit committees are a key aspect of good corporate governance; they help raise the profile of internal control, risk management and financial reporting issues within an organisation, as well as providing a forum for the discussion of issues raised by internal and external auditors.

Audit committees are not just the concern of auditors; they are about the governance, financial reporting and performance of the whole organisation. Everyone charged with the responsibility for governance in their local authority will want to familiarise themselves with the issues covered by this new practical guide, and will doubtless wish to share it widely as a driver to enable their audit committee to work effectively.