Chapter 2.8: Audit process

Annual financial statements for schools are required to be audited.  The Controller and Auditor-General is responsible for the audit of all Crown entities, including schools.  It is the Office of the Auditor-General that appoints auditors to undertake the audit work on behalf of the Controller and Auditor General.

2.8.1 Pre-audit consultations

Schools should hold a pre-audit consultation with their auditor to clarify mutual expectations, processes, working paper requirements, file availability, liaison responsibilities and respective response dates. This will help to avoid any misunderstandings and assist the school and the auditor to meet their respective statutory responsibilities.

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2.8.2 Board review of draft financial statements before audit

The board should review the draft financial statements before they are sent to the auditor. As the financial statements may require subsequent amendment, the board may also delegate this responsibility to the Committee and allow the Committee to liaise with the auditor.

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2.8.3 Audit

Each school should designate one person to respond to the auditor’s requests for information and explanations. The auditor should be given this person’s name and telephone number.  The efficiency of the audit will be enhanced if the school contact person responds immediately to the auditor’s requests for working papers, accounting records, board minutes and related reports.

Auditors check for breaches and qualifications (i.e. conflicts of interest, unlawful investments etc) as part of auditing annual accounts. This information is recorded in the school’s management letter and to the Ministry. 

Auditors check for breaches and qualifications (ie conflicts of interest, unlawful investments etc) as part of auditing annual accounts. This information is recorded in the school's management letter, and to the Ministry of Education.