The principal role of the external auditor is to verify that the statutory accounts of the council are accurate, legal and corporate governance arrangements are adequate, grants received from central government have been spent properly and that the councils' performance in delivering local services is effective.
Internal audit also has its basis in statute. It is a service created alongside but operated independently of the other services and resources deployed by the council. Internal audit looks at the key risks facing the council and evaluates what is being done to manage those risks effectively. This requires a high degree of independence of the services under review and this is preserved by the reporting structure internal audit has within the council. Internal and external audit work closely and regularly undertaken audits jointly in order to ensure that resources are managed effectively.
You can download the internal audit terms of reference document below:
Internal Audit Terms of Reference (pdf 114kb)