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National Audit Office report: Code of Practice dealing with the relationship between the National Audit Office and the Comptroller and Auditor General

Code of Practice dealing with the relationship between the National Audit Office and the Comptroller and Auditor General

The Act requires the NAO Board to agree a Code of Practice setting out in detail how the relationship between the Board and the Comptroller and Auditor General will work in practice.

Governance of the NAO

The Act

The NAO’s governance arrangements reflect our statutory position, balancing the need for appropriate controls and oversight against the preservation of the Comptroller & Auditor General’s (C&AG) independence. This balance is recognised in the Budget Responsibility and National Audit Act 2011, which establishes the statutory basis for the NAO’s governance.

The Act modernised the NAO’s governance arrangements, while protecting the independence of the C&AG in matters of audit judgement.

The Act:

  • Established the NAO as a corporate entity, with a statutory board.
  • Requires that the C&AG and chair are to be appointed by Her Majesty the Queen, upon an address to Parliament by the Prime Minister.
  • Determined that the Public Accounts Commission (TPAC) is formally responsible for the appointment of the non-executive members of the NAO board and the external auditor of the NAO.
  • Requires the NAO Board to agree a Code of Practice setting out in detail how the relationship between the Board and the C&AG will work in practice. This Code must be approved by TPAC.

Public Accounts Commission

Parliament sets our budget, scrutinises our performance, appoints our non-executive members and appoints our external auditors. It does this through a House of Commons committee called the Public Accounts Commission (TPAC).

 

Publication details:

ISBN: 9781786044242 [Buy a hard copy of this report]

HC: 1230, 2021-22

Published date: March 29, 2022