1.5 Governance and Audit

Contracting authorities are responsible for establishing arrangements for ensuring the proper conduct of their affairs, including conformance to standards of good governance and accountability with regard to procurement. They will usually involve their audit committees or similar groups in monitoring these arrangements.

Internal audit should provide an independent and continuing appraisal of an organisation's internal control system and continuing assurance that its internal control systems are adequate and effective.

Each organisation's audit committee should set the degree of assurance it requires concerning the management of procurement risk, and internal audit should plan its work accordingly. This should address the Procurement Competency Framework recommendation that organisations confirm annually that they comply with minimum standards of governance and accountability for procurement

External audit provide an opinion on contracting authorities' financial statements and the regularity of transactions. As part of the wider scope of public audit, each year they review and report on contracting authorities' corporate governance arrangements, including arrangements to achieve value for money in the use of resources and may seek assurances on compliance with public procurement law.

External audit may review and report on standards of risk management and governance with regard to procurement in any contracting authority. Additionally, AuditScotland's programme of performance audits may scrutinise and report on contracting authorities' procurement.