C&AG's audit opinion

True and fair view

The C&AG is required to form an opinion as to whether the accounts of audited bodies are free from material misstatement and comply with the relevant reporting requirements.

With the support of the NAO, he provides assurance that the financial statements present a “true and fair” view of the financial position and performance of the body in accordance with the statute, charter or other regulatory framework which underpins it.

In certain circumstances, the opinion which the C&AG provides may be modified to accommodate the type of account or the underlying legislation.

Regularity

When certifying accounts the C&AG is also required to provide assurance that the transactions recorded in the financial statements are in accordance with Parliamentary or other authority. (There are a small number of exceptions to this where bodies do not provide a public function or are not funded from public monies).

This "regularity" objective is a central feature of our work and is one of its distinguishing characteristics.

A transaction is regular when it is made in accordance with:

• authorising legislation;
• regulations issued under governing legislation;
• Parliamentary authorities; and
• Treasury authorities.

Each audit contains specific steps and procedures to address the risk of irregularity and to identify instances of material breach.

Further information on regularity can be found in the APB's Practice Note 10 and Managing Public Money.

Standards

We have a professional responsibility to report if the financial statements do not comply, in any material respect, with the Standards that have been issued by the Accounting Standards Board and relevant guidance issued by HM Treasury such as the Financial Reporting Manual and Managing Public Money.

If we identify material misstatements, the C&AG will issue a qualified opinion and attach a further explanatory report.

C&AG reports

Where there are no material misstatements or irregularities in the accounts, the C&AG may still prepare a report to Parliament or the governing body where he feels that there are significant matters which need to be addressed.

Reports on central government bodies are addressed to Parliament and may be considered by the Select Committee of Public Accounts (PAC). The PAC takes evidence on the C&AG's reports and publishes its findings, conclusions and recommendations.

More information can be found in The General Reports of the Comptroller and Auditor General.