An Evaluation of the Health of Internal Audit in Local Authorities
About the report
The objective of this research was to assess the health and status of internal audit within local authorities. Many local authorities are facing challenges, which include increasing financial pressures to deliver statutory services. Many internal audit functions have been impacted by these constraints.
Given these challenges, we’re pleased that 44% (168) local authorities in the United Kingdom and Northern Ireland took part in our research, covering all geographic regions and types of local authorities.
This report explores the health of internal audit functions at local authorities through three key themes. The first is the financial risk of local authorities, the second explores internal audit stakeholder understanding and perception of internal audit, and finally internal audit function resourcing.
Key findings
- 35% of survey respondents felt that it was likely the local authority would have financial difficulties in 2024/25 year which would impact significantly the delivery of statutory services
- 26% felt that their audit committee did not have a good understand of the role of internal audit
- 71% felt that their audit committee understood the purpose of internal audit
- 88% of respondents had not fully completed their internal audit plan for the 2023/24 financial year
