Audit Quality Report 2024

Developing a roadmap for continuing success

My role as Executive Director Audit Services is to put in place arrangements to achieve the highest standards of international professional practice and to create an environment in which audit quality can flourish.

Against the backdrop of significant changes in the past two years to our audit approaches, I was delighted with the outcome of the QAD file review results with 100% of all files reviewed meeting our quality target.

This result is even more impressive, when viewed against the recruitment and retention challenges we have experienced in recent times along with our desire to return to pre-pandemic audit timetables.

Expanding our trainee and apprentice schemes

In response to the recruitment challenges we have experienced we have been largely been successful in expanding our trainee and apprentice schemes and in recruiting to fill vacant posts. This has placed additional demands on us to provide support and training to new colleagues, which we are investing to, which illustrates how the three lines of assurance operate together effectively.

These achievements also highlight the commitment, dedication and professionalism of our staff, for which I am hugely grateful.

I was also delighted that we were able to strengthen out Audit Quality Committee arrangements by expanding the Committee membership (from one to three independent members) with one of the independent committee members (Suzanne Jones) also assuming the role of Chair.

Over the past year we have continued to make progress across a number of other fronts, including:

• putting in place a new Audit Wales Workforce Strategic Plan;
• developing arrangements to bring forward our accounts and local performance work;
• ongoing work to fully embed ISA 315 and INTOSAI standards and to realise efficiencies from implementing these new standards;
• ongoing work to embed ISQM 1 risk management processes into our Audit Wales arrangements; and
• increasing the focus on financial analysis and outcomes in our work; developing a better approach to following up work and audit recommendations; and making reports easier to read and meet our audience needs.

Setting the stage for our future together

A major highlight for us as an organisation in 2024 was to see so many colleagues come together in April for our all-staff conference, ‘Setting the Stage for our Future’, with numerous lively and engaging discussions about the future shape of audit.

I wholly heartedly support and agree with Ian and Adrian’s ambition for us to be a learning organisation and one that is focused on developing our use of digital technologies supported by an agile and skilled workforce.

To that end we have commenced work on an audit development ‘roadmap’. This ‘roadmap’ will draw together developments impacting on our audit work and the response needed, including future skills and digital development; areas where investment may be needed; along with our benefits realisation strategy.

Building on the successes I have outlined and others, I fully believe that the ‘blueprint’ we are developing will help deliver the vision Ian and Adrian set out in their foreword: ‘Building Lasting Confidence and Trust in Quality’.

Ann-Marie Harkin, Executive Director for Audit Services