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Audit Wales has published the Auditor General for Wales’ new Code of Audit Practice, which takes effect immediately, replacing the 2020 Code.
Like its predecessor, the new Code is a high-level principles-based document that sets out how audit and certain other functions of the Auditor General are to be exercised, including audits of local government bodies, the NHS and the Welsh Government.
The new Code has been developed following a comprehensive consultation process. The main developments are a strengthening of emphasis on proportionality—particularly making good use of resources and taking a risk-based approach—requiring the application of professional scepticism and strengthening provisions on independence in line with the FRC’s Ethical Standard.
The Auditor General is required to issue a Code of Audit Practice by the Public Audit (Wales) Act 2013. The Code must embody what appears to the Auditor General to be the best professional practice.
The new Code provides an up-to-date basis for public sector audit work in Wales, taking account of developments in professional standards, new practices, such as the use of artificial intelligence, and resource constraints across the public sector.